Does the Beverly Anns Cookie Franchise Agreement grant the right to sublicense or subfranchise any rights?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We, and our affiliates, have the right to operate, and to license others to operate, Franchised Businesses at any location outside the Territory, even if doing so will or might affect your operation of your Franchised Business.
We retain all territorial rights not expressly granted to you. This includes, but is not limited to, the right to (i) to own, franchise, or operate Franchised Businesses at any location outside of the Territory, regardless of the proximity to your Franchised Business; (ii) to use the Marks and the System to sell any products or services, similar to those which you will sell, through any alternate channels of distribution within or outside of the Territory, including, but not limited to, other channels of distribution such as television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet; (iii) to use and license the use of other proprietary and non-Marks or methods which are not the same as or confusingly similar to the Marks, at any location, including within the Territory, which may be similar to or different from your Franchised Business; (iv) to engage in any transaction (including purchases, mergers or conversions), involving the System or a new system, with any business, including businesses that directly or indirectly compete with your Franchised Business, regardless of their location, provided that any competing businesses located inside your Territory will not operate under the Marks; (v) to implement multi-area marketing programs which may allow us or others to solicit or sell to customers anywhere; (vi) to engage in any other business activities not expressly prohibited by this Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Beverly Anns Cookie franchise agreement does not grant franchisees the right to sublicense or subfranchise any rights. The franchisor, Beverly Anns Cookie, retains the right to operate and license others to operate franchised businesses outside of a franchisee's territory, even if it impacts the franchisee's business.
Specifically, Beverly Anns Cookie retains all territorial rights not expressly granted to the franchisee. This includes the right to own, franchise, or operate franchised businesses at any location outside the franchisee's territory, regardless of proximity. They also retain the right to sell products or services similar to those sold by franchisees through alternate channels of distribution, such as television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet, both within and outside the franchisee's territory.
This means that a Beverly Anns Cookie franchisee's rights are limited to operating a single franchised business within their specified territory, and they cannot delegate or transfer any of those rights to another party. The franchisor maintains control over expansion and alternative distribution channels, which could potentially create competition for the franchisee.