On whom is the Beverly Anns Cookie Franchise Owner Agreement binding?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1.3 Transfer Restrictions. Your Company Documents will recite that this Franchise Agreement restricts the issuance and transfer of any ownership interests in you, and all certificates and other documents representing ownership interests in you will bear a legend referring to this Franchise Agreement's restrictions.
- 3.1.5 Owner Identification. You certify that Attachment B to this Franchise Agreement completely and accurately describes all of your Owners and their interests in you as of the Effective Date. You agree to sign and deliver to us a revised Attachment B to reflect any permitted changes in the information that Attachment B now contains.
You acknowledge and agree that: (i) the terms of this Franchise Agreement are reasonable both in time and in scope of geographic area; (ii) our use and enforcement of covenants similar to those described above with respect to other "Beverly Ann's Cookie Truck" franchisees benefits you and the Owners because it prevents others from unfairly competing with your Franchised Business; and (iii) you and the Owners have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Franchise Agreement. You hereby waive any right to challenge the terms of the Brand Covenants as being overly broad, unreasonable or otherwise unenforceable.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Franchise Owner Agreement binds both the franchisee and their owners. Specifically, the franchisee must ensure their company documents state that the Franchise Agreement restricts the issuance and transfer of any ownership interests. Furthermore, all documents representing ownership interests must reference these restrictions.
Beverly Anns Cookie requires franchisees to identify all owners and their interests accurately in an attachment to the Franchise Agreement. Franchisees must update this attachment to reflect any permitted changes. This ensures Beverly Anns Cookie knows who the owners are and their respective stakes in the franchise.
Moreover, Beverly Anns Cookie emphasizes that the terms of the Franchise Agreement are reasonable in both time and geographic scope. The franchisor's enforcement of similar covenants with other franchisees benefits the franchisee and their owners by preventing unfair competition. Franchisees and their owners must acknowledge they have sufficient resources and business experience to comply with the Franchise Agreement's terms, waiving any right to challenge the covenants as overly broad or unenforceable. This indicates that both the franchisee and their owners are expected to adhere to the agreement's stipulations and cannot claim ignorance or undue burden.