What franchise disclosure document is provided to the transferee of a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
You must request that the transferee be provided with our then-current form of franchise disclosure document.
You agree that we will not be liable for any representations that you or your Owners make that are inconsistent with such franchise disclosure 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 the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee transfers their franchise to a new owner (the transferee), Beverly Anns Cookie requires that the transferee be provided with the then-current form of the franchise disclosure document. This ensures the potential new franchisee has access to the most up-to-date information about the Beverly Anns Cookie franchise system before completing the transfer.
This requirement protects both Beverly Anns Cookie and the transferee. Beverly Anns Cookie is protected from liability for any representations made by the transferring franchisee that are inconsistent with the current FDD. The transferee benefits by receiving a standardized disclosure of all relevant information, allowing them to make an informed decision about acquiring the franchise. This practice aligns with standard franchising regulations that emphasize transparency and full disclosure to potential franchisees.
Furthermore, the transferee is required to sign the then-current form of the franchise agreement and related documents. The only exceptions to this are that the term of the agreement remains the same as the original agreement and the transferee does not have to pay an initial franchise fee. This ensures that the transferee is bound by the latest terms and conditions of the Beverly Anns Cookie franchise agreement, with adjustments made to reflect the ongoing nature of the franchise.