For a Beverly Anns Cookie franchise, how many successive renewal terms are franchisees eligible for?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement/Additional Franchise Reservation Agreement | Summary |
|---|---|---|
| (a) Length of the Franchise term | Section 5.1/Not Applicable | Ten years. |
| (b) Renewal or extension of the term | Section 5.1/Not Applicable | If you are in good standing and you meet other requirements, you may apply for two successive terms of ten years. |
| (c) Requirements for Franchisee to renew or extend | Section 5.2/Not Applicable | The term "renewal" refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. Written notice must be provided and you must be fully compliant with the Franchise Agreement. You must sign our then-current Franchise Agreement and ancillary documents for the successor term, and this new franchise agreement may have materially different terms and conditions (including, e.g., higher royalty and advertising contributions) from the Franchise Agreement that covered your original term. You will be required to pay the highest tier of royalty payment under the new franchise agreement (meaning that you will not be able to take advantage of any step-up royalty schedules that may be offered to new franchisees). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, franchisees who meet specific requirements and maintain good standing have the opportunity to renew their franchise agreement for up to two successive terms. Each of these renewal terms extends the franchise agreement by ten years.
To qualify for renewal, a franchisee must adhere to the terms outlined in the existing Franchise Agreement. This includes maintaining compliance with all operational standards, payment schedules, and brand guidelines set forth by Beverly Anns Cookie. Meeting these requirements is crucial, as any breaches of the agreement could disqualify a franchisee from being eligible for renewal.
It is important to note that when a franchisee renews their agreement, they will be required to sign the then-current Franchise Agreement and any associated documents. These updated agreements may contain terms and conditions that differ significantly from the original agreement, potentially including higher royalty fees and advertising contributions. Additionally, franchisees will be required to pay the highest tier of royalty payment under the new franchise agreement. This means that franchisees will not be able to take advantage of any step-up royalty schedules that may be offered to new franchisees.