Does the Beverly Anns Cookie Franchise Agreement include a section on 'Brand Covenants Insurance'?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
must notify us as soon as possible, but no later than three business days of any: (i) apparent infringement of any of the Intellectual Property; (ii) challenge to your use of any of the Intellectual Property; or (iii) claim by any person of any rights in any of the Intellectual Property. You may not communicate with any person other than us and our counsel in connection with any such infringement, challenge or claim. We will have sole discretion to take such action as we deem appropriate. We have the right to exclusively control any litigation, Patent and Trademark Office proceeding, or other proceeding arising out of any such infringement, challenge or claim. You agree to execute any and all instruments and documents, render such assistance, and do such acts and things as may, in the opinion of our counsel, be necessary or advisable to protect and maintain our interest in any such litigation, Patent and Trademark Office proceeding, or other proceeding, or to otherwise protect and maintain our interest in the Intellectual Property.
18. BRAND COVENANTS
Reason for Covenants
The covenants in this Section 18 shall be referred to as the "Brand Covenants."
You acknowledge that the System is distinctive and has been developed by us and/or our affiliates at great effort, time and expense, and that the Intellectual Property and the training and assistance we provide would not be acquired except through implementation of this Franchise Agreement. You also acknowledge that competition by you, the Owners, or persons associated with you or the Owners (including family members) could jeopardize the entire System because you and the Owners have received an advantage through knowledge of our day-to-day operations and Confidential Information related to the System. Accordingly, you and the Owners agree to comply with the Brand Covenants described in this Section to protect the Intellectual Property and our System.
Unfair Competition During the Term
For purposes of this Franchise Agreement, "Competitive Business" means any business that: (i) operates as a mobile or temporary location vendor primarily serving food and/or beverages or selling retail merchandise or services from a vehicle, kiosk or other moveable property;
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 explicitly contain a section titled 'Brand Covenants Insurance'. However, Section 18, referred to as the "Brand Covenants," outlines various obligations and restrictions placed on the franchisee to protect Beverly Anns Cookie's brand and system. These covenants cover aspects like unfair competition, intellectual property, and confidentiality. While there isn't a specific insurance requirement tied directly to these covenants, franchisees should understand the implications of breaching these covenants.
The FDD states that failure to comply with the Brand Covenants will cause substantial and irreparable damage to Beverly Anns Cookie and its franchisees, entitling Beverly Anns Cookie to injunctive relief. This means a franchisee could face legal action if they violate these covenants. While Beverly Anns Cookie may apply for injunctive relief without bond, if a court requires a bond, it will not exceed $1,000. The franchisee also waives any claims for damages due to the wrongful issuance of an injunction, with the sole remedy being the dissolution of the injunction if warranted.
Although the FDD does not explicitly require insurance related to Brand Covenants, it is crucial for prospective franchisees to fully understand the scope and implications of these covenants. Franchisees should consider consulting with legal and insurance professionals to assess their risk exposure and determine if additional insurance coverage is necessary to protect themselves against potential liabilities arising from breaches of the Brand Covenants. It would be prudent to discuss with Beverly Anns Cookie what types of insurance, if any, would mitigate risks associated with potential covenant breaches.