Who is the Beverly Anns Cookie Franchise Owner Agreement binding upon?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1.1 Authority. You have the authority to execute, deliver, and perform your obligations under this Franchise Agreement and all related agreements and are duly organized or formed, validly existing, and in good standing under the laws of the state of your incorporation or formation.
- 3.1.2 Company Documents. At our request, you will furnish copies of all documents and contracts governing the rights and obligations of your Owners (such as, Articles of Incorporation or Organization and partnership, operating or shareholder agreements or similar documents, the "Company Documents"). You will not alter, change, or amend your Company Documents, without obtaining our prior written approval, which approval we will not unreasonably deny or withhold, and will grant if such changes will not prevent you from performing your obligations under this Franchise Agreement.
- 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.
- 3.1.4 Naming. You agree not to use the name "Beverly Ann's Cookie Truck" or any similar wording in the name of your Entity.
- 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.
- 3.1.6 Single Purpose Entity. The Franchised Business will be the only business that the Entity may operate, and your organizational documents must reflect this (although the Owners in the Entity
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 agreement is binding upon the franchisee and their owners. Specifically, the franchisee must have the authority to execute, deliver, and perform their obligations under the Franchise Agreement. This means the franchisee entity (if not an individual) must be properly organized and in good standing under the laws of its state.
Beverly Anns Cookie requires franchisees to furnish copies of documents governing the rights and obligations of their owners, such as articles of incorporation, partnership agreements, or shareholder agreements. Franchisees cannot alter these documents without prior written approval from Beverly Anns Cookie, which will be granted if the changes do not prevent the franchisee from fulfilling their obligations under the Franchise Agreement. The company documents must also state that the Franchise Agreement restricts the issuance and transfer of any ownership interests in the franchisee entity, and all ownership interest documents must bear a legend referring to these restrictions.
Furthermore, the franchisee agrees not to use the name "Beverly Ann's Cookie Truck" or any similar wording in the name of their entity. Franchisees must also provide accurate information about all owners and their interests in the franchisee entity. The franchised business must be the only business that the entity operates, and the organizational documents must reflect this, although owners may have other business interests as long as they comply with any restrictions on competitive businesses outlined in the Franchise Agreement. These stipulations ensure that all parties involved are aware of and bound by the terms of the agreement, maintaining the integrity and standards of the Beverly Anns Cookie franchise system.