What form of franchise agreement must the transferee of a Beverly Anns Cookie franchise sign?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee and its owners sign our then-current form of franchise agreement and related
documents, including, but not limited to, our then-current form of Franchise Owner Agreement or other guaranty (unless we, in our sole discretion, instruct you to assign this Franchise Agreement to the transferee), except that: (i) the Term and successor term(s) shall be the Term and successor term(s) remaining under this Franchise Agreement; and (ii) the transferee does not need to pay a separate initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a transferee must sign the then-current form of franchise agreement. However, there are a couple of exceptions to this rule.
First, the term and successor term(s) of the new agreement will match the remaining term and successor term(s) of the original franchise agreement. This means the transferee doesn't get a brand new, full-length franchise term, but instead takes over the existing agreement's timeline. Second, the transferee is not required to pay a separate initial franchise fee, which can be a significant cost savings.
In addition to the franchise agreement, the transferee and their owners must also sign related documents, such as a Franchise Owner Agreement or other guaranty. The franchisor retains the discretion to instruct the transferor to simply assign the existing Franchise Agreement to the transferee, potentially avoiding the need for a completely new agreement. This provides Beverly Anns Cookie with flexibility in how they handle franchise transfers.