Does Beverly Anns Cookie exercise a Right of First Refusal during franchise transfers?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have at least 30 additional days to conduct a due diligence review and to prepare for closing. You agree to provide us with all information and records we request about the Franchised Business, and we will have the absolute right to terminate the obligation to purchase the Franchised Business for any reason during the due diligence period. You and we will act in good faith to agree on the terms and conditions of the written offer, and closing will take place on the 61st day following our receipt of your offer. We will be entitled to receive from you or the Owner, as applicable, all customary representations and warranties given by you as the seller of the assets or the Owner as the seller of the ownership interest or, at our election, the representations and warranties contained in the offer. If we do not exercise our right of first refusal, you or the Owner, as applicable, may complete the Transfer to the purchaser pursuant to and on the terms of the offer, subject to the requirements of this Section (including our approval of the transferee). However, if the sale to the purchaser is not completed within 120 days after your receipt of the offer, or there is a material change in the terms of the sale, we will again have the Right of First Refusal specified in this Sectio
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the company retains a Right of First Refusal during franchise transfers.
If a franchisee decides to sell their Beverly Anns Cookie franchise, they must first offer the franchise to Beverly Anns Cookie on the same terms that they would offer it to a third-party buyer. Beverly Anns Cookie has the option to purchase the franchise under those terms.
Beverly Anns Cookie has at least 30 additional days to conduct a due diligence review and prepare for closing. The franchisee must provide all requested information and records about the Franchised Business, and Beverly Anns Cookie has the right to terminate the obligation to purchase for any reason during the due diligence period. Both parties must act in good faith to agree on the terms and conditions of the written offer, with closing to occur on the 61st day following Beverly Anns Cookie's receipt of the offer.
If Beverly Anns Cookie declines to exercise its Right of First Refusal, the franchisee may proceed with the transfer to the third-party buyer, subject to Beverly Anns Cookie's approval of the transferee and adherence to all other transfer requirements outlined in the Franchise Agreement. However, if the sale is not completed within 120 days or if there is a material change in the terms, Beverly Anns Cookie will again have the Right of First Refusal.