Does the Beverly Anns Cookie Franchise Agreement grant an exclusive or non-exclusive license?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
er our service marks, trademarks, trade names, trade dress, logos, slogans and commercial symbols as we may from time to time authorize or direct you to use with the operation of the Franchised Business (the "Marks"). We and our affiliates use, promote, and license a registered patent to be used in connection with the operation of Franchised Businesses, and we may create, use, and license other patents for the same use (the "Patent").
You must operate your Franchised Business with either our proprietary Beverly Ann's Cookie Truck mobile truck, the "Grandma's Recipe Motor Vehicle" ("GRM") or our proprietary "Grandma's Recipe Trailer" ("GRT)." We will refer to the primary vehicle (either the GRM or a GRT) used in the Franchised Business as the "GR Vehicle." Franchisees may also operate an additional GRT as "Additional Equipment" (see Section 7.4). This Franchise Agreement grants you the right to operate the GR Vehicle within the Territory (defined below).
We grant you a non-exclusive license to own and operate a single Franchised Business using the business formats, methods, procedures, signs, designs, standards, specifications, distinguishing elements, and intellectual property (the "System") that we authorize strictly in compliance with the terms and conditions set forth in this Franchise Agreement, within the Territory or other areas we may specify in Attachment A to this Franchise Agreement. You recognize and acknowledge the distinctive significance to the public of the System and Marks and acknowledge and understand our high and uniform standards of quality, appearance and service to the value of the System. You acknowledge that we may change, improve or otherwise modify the System as we deem appropriate in our discretion, and you agree to promptly accept and comply with any such changes, improvements or modifications. You further acknowledge that our
grant to operate a Franchised Business is based on the representations made in your application. You acknowledge and agree this Franchise Agreement does not grant you the right or option to open any additional Franchised Businesses or any right to sublicense or subfranchise any of the rights we grant you in this Franchise Agreement. You may only open an additional Franchised Business under a separate franchise agreement with us, which we may grant in our sole discretion.
As part of accepting our grant for you to own and operate the Franchised Business, you hereby represent that: (i) you have received a copy of our current franchise disclosure document; (ii) you are aware of the fact that other present or future franchisees of ours may operate under different forms of agreement and consequently that our obligations and rights with respect to our various franchisees may differ materially in certain circumstances; and (iii) you are aware of the fact that we may have negotiated terms or offered concessions to other franchisees and we have no obligation to offer you the same or similar negotiated terms or concessions. This Franchise Agreement does not grant you rights to pursue any of our or our affiliates' business concepts other than the Franchised Business.
**3.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the franchise agreement grants a non-exclusive license to operate a single franchised business. Specifically, the franchisee is authorized to use Beverly Ann's Cookie's business formats, methods, procedures, signs, designs, standards, specifications, distinguishing elements, and intellectual property within a designated territory. This authorization is strictly subject to the terms and conditions outlined in the franchise agreement or other areas specified in Attachment A.
Beverly Ann's Cookie retains the right to operate or license others to operate franchised businesses outside the franchisee's territory, even if it potentially impacts the franchisee's business. They also reserve the right to use the brand's trademarks and systems to sell similar products or services through alternative channels of distribution, such as television, mail order, catalogs, wholesale retail, or the internet, both within and outside the franchisee's territory.
Furthermore, Beverly Ann's Cookie can use and license other proprietary marks or methods, even within the franchisee's territory, as long as they are not confusingly similar to the franchisee's marks. They can also engage in transactions, including mergers or conversions, with businesses that compete with the franchisee, provided that these competing businesses within the franchisee's territory do not operate under the Beverly Ann's Cookie trademarks. The franchisor is not obligated to compensate the franchisee for exercising these rights, even within the franchisee's territory, and the franchisee acknowledges potential competition from the franchisor, other franchisees, and alternative distribution channels.