What is the Beverly Anns Cookie franchisee agreeing to regarding changes to the loan provisions?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties and subject to the following terms and conditions, it is agreed as follows:
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- Franchisor and Franchisee agree that because the Franchised Business is already open and operating and being acquired via a transfer, Franchisee and Franchisor shall be relieved of performing certain pre-opening and development obligations set forth in the Franchise Agreement. Specifically:
- a. Franchisee has already acquired the truck and, if applicable, additional equipment ("Assets") under Section 13.13 of the Franchise Agreement upon transfer of the Franchised Business. Section 13.13 of the Franchise Agreement is hereby amended accordingly. If any equipment is required for the Assets as set forth in Section 13.13 of the Franchise Agreement, Franchisee agrees to purchase such items from Franchisor prior to operating the Assets.
- b. Because Franchisee is a transferee franchisee, Franchisee shall not be required to pay the Initial Franchise Fee. Section 6.6 of the Franchise Agreement is hereby amended accordingly.
- c. If Franchisee is an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall not be required to attend Initial Training and there shall be no Initial Training Deadline. Accordingly, Franchisor is under no obligation to provide Initial Training to Franchisee. If Franchisee is not an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall complete the initial training program contained in Item 11 and Franchise Agreement Section 8 prior to beginning operation of the Beverly Ann's Cookies franchise. Notwithstanding the foregoing, any successor
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
The 2025 Beverly Anns Cookie Franchise Disclosure Document includes several contract amendments that a franchisee may encounter. One such amendment is the "Fixed Location Amendment to Franchise Agreement." This amendment addresses scenarios where a franchisee is acquiring an already operating Beverly Ann's Cookies franchise through a transfer.
According to the agreement, both Beverly Ann's Cookie and the franchisee acknowledge that because the business is already open and operating via a transfer, they are relieved of certain pre-opening and development obligations typically outlined in the standard Franchise Agreement. Specifically, the franchisee acknowledges that they have already acquired the necessary truck and any additional equipment as per Section 13.13 of the Franchise Agreement upon the transfer of the franchised business. Section 13.13 of the Franchise Agreement is amended accordingly. The franchisee is obligated to purchase any additional required equipment from Beverly Ann's Cookie before operating the assets.
Furthermore, as a transferee franchisee, the new franchisee is not required to pay the initial franchise fee, amending Section 6.6 of the Franchise Agreement. If the franchisee is already part of the Beverly Ann's Cookie system, they are not required to attend initial training, and there is no initial training deadline. However, any successor Designated Manager must attend initial training, and additional personnel may attend, bearing the costs for hotel and transportation. Section 8 of the Franchise Agreement is amended to reflect these changes.