Does the Beverly Anns Cookie Franchise Agreement grant an exclusive territory?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
greement
The Franchise Agreement for your Beverly Ann's Business grants you an exclusive territory. Your Protected Territory will be based on the geographic area and population properties within that area and other relevant demographic characteristics. We will generally grant only one license to a franchisee for any area with a population up to 150,000. We will use the population as listed on zip-codes.com, which is derived from known delivery information, household occupancy rates, as well as any other sources that we believe are reliable for determining the current population in and around your Protected Territory. In certain densely populated metropolitan areas, a territory may be considerably smaller, while franchisees operating in less densely populated urban areas may have significantly larger areas. If the population of your Protected Territory increases by more than 25%, we may reduce the size of your Protected Territory to 150,000 people unless you purchase an additional GRM/GRT.
You will operate a single Beverly Ann's Business and a single GRM/GRT within the Protected Territory identified in the Franchise Agreement. You are not restricted from the amount of Additional Equipment that you may operate in your Protected Territory. Your Protected Territory will be identified in an exhibit to your Franchise Agreement. The boundaries of your Protected Territory will coincide with the boundaries of one or more adjacent zip codes. You will be permitted to engage in direct advertising and solicitation of clients only within the boundaries of your Protected Territory unless we approve otherwise. Other than as described below, while the Franchise Agreement is in effect and you are not in default, we and our affiliate will not, in your Protected Territory, operate a company-owned unit or grant a franchise for a similar or competitive business. You will only have the right to operate the Beverly Ann's Business in your Protected Territory under the terms and conditions of the Franchise Agreement, and we reserve all other rights to ourselves and our affiliate. You may not operate, solicit, or accept orders outside your Protected Territory unless we allow otherwise in our sole discretion. We have no plans to allow franchisees to solicit or accept orders outside of their Protected Territory other than in an open territory on a case-by-case basis.
We reserve all rights not expressly granted in the Franchise Agreement. Kona Franchisor Affiliates' franchisees may operate their franchises in your Protected Territory. We or our affiliate may own, operate, or authorize others to own or operate Beverly Ann's Businesses or any other form of Beverly Ann's Cookies business outside your Protected Territory, including co-branding activities, and may operate other kinds of businesses under other marks within your Protected Territory. We and our affiliate may conduct, or authorize others to conduct, any form of business at any location selling any type of product or service not offered under the Marks. We reserve the right to purchase or be purchased by, or merge or combine with, to convert to the System, or be converted into a new system or chain with any business, whether franchised or corporately owned, including a business that competes directly with your Beverly Ann's Business, wherever located, provided that in such situations the newly acquired business(es) may not operate under the Marks inside of your Protected Area; and to implement multi-area marketing programs which may allow us or others to solicit or sell to customers anywhere. We reserve the right to issue mandatory policies to coordinate such multi-area marketing programs.
Although we have not done so, we and our affiliate may sell products under the Marks within and outside your Protected Territory through any method of distribution other than through a dedicated Beverly Ann's Business, including sales through such channels of distribution as the internet, mail order sales, telemarketing, or other direct marketing sales, wholesalers, unrelated retail outlets or other distribution outlets (together, "Alternative Distribution Channels").
Source: Item 12 — TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the Franchise Agreement does grant an exclusive territory. The Protected Territory is based on geographic area, population properties, and other relevant demographic characteristics. Generally, Beverly Anns Cookie grants only one license to a franchisee for an area with a population of up to 150,000, using data from zip-codes.com and other reliable sources. However, the size of the territory may vary, being smaller in densely populated metropolitan areas and larger in less densely populated urban areas. If the population of a Protected Territory increases by more than 25%, Beverly Anns Cookie may reduce the territory size to 150,000 people unless the franchisee purchases an additional GRM/GRT.
A franchisee will operate a single Beverly Ann's Business and a single GRM/GRT within the Protected Territory, but there are no restrictions on the amount of Additional Equipment that may be operated in the territory. The boundaries of the Protected Territory will coincide with the boundaries of one or more adjacent zip codes. Franchisees are permitted to engage in direct advertising and solicitation of clients only within the boundaries of their Protected Territory, unless otherwise approved by Beverly Anns Cookie. While the Franchise Agreement is in effect and the franchisee is not in default, Beverly Anns Cookie and its affiliates will not operate a company-owned unit or grant a franchise for a similar or competitive business within the Protected Territory. However, franchisees only have the right to operate the Beverly Ann's Business in their Protected Territory under the terms and conditions of the Franchise Agreement, and Beverly Anns Cookie reserves all other rights.
It is important to note that Beverly Anns Cookie reserves several rights, including the right for Kona Franchisor Affiliates' franchisees to operate in a franchisee's Protected Territory. Beverly Anns Cookie or its affiliates may also own, operate, or authorize others to own or operate Beverly Ann's Businesses or any other form of Beverly Ann's Cookies business outside the Protected Territory, including co-branding activities, and may operate other kinds of businesses under other marks within the Protected Territory. They may also conduct any form of business at any location selling any type of product or service not offered under the Marks. Additionally, Beverly Anns Cookie reserves the right to engage in alternative distribution channels such as internet sales, mail order, and telemarketing, and the franchisee will generally not receive compensation for sales through these channels unless they fulfill the order themselves. Franchisees may be required to pay an Initial Territory Adjustment Fee or a Territory Relocation Fee of $2,500 if they wish to revise, amend, or relocate their Protected Territory.