What is the Beverly Anns Cookie franchisee agreeing to do regarding disputes about equipment performance?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
New Franchisee acknowledges and agrees that the purchase of the rights to the Franchised Business ("Transaction") occurred solely between Former Franchisee and New Franchisee.
New Franchisee also acknowledges and agrees that Franchisor played no role in the Transaction and that Franchisor's involvement was limited to the approval of Requested Assignment and any required actions regarding New Franchisee's signing of the New Franchise Agreement for the Franchised Business.
New Franchisee agrees that any claims, disputes, or issues relating New Franchisee's acquisition of the Franchised Business from Franchisee are between New Franchisee and Former Franchisee, and shall not involve Franchisor.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Beverly Anns Cookie Franchise Disclosure Document, a New Franchisee acknowledges and agrees that the purchase of the rights to the Franchised Business occurred solely between the Former Franchisee and the New Franchisee. The New Franchisee also acknowledges and agrees that Beverly Anns Cookie played no role in the transaction and that its involvement was limited to the approval of the Requested Assignment and any required actions regarding the New Franchisee's signing of the New Franchise Agreement for the Franchised Business.
Specifically, the New Franchisee agrees that any claims, disputes, or issues relating to the New Franchisee's acquisition of the Franchised Business from the Former Franchisee are between the New Franchisee and the Former Franchisee, and shall not involve Beverly Anns Cookie. This means that if a New Franchisee has issues with equipment acquired from the Former Franchisee, the New Franchisee must resolve those issues directly with the Former Franchisee, without the involvement of Beverly Anns Cookie.
This agreement protects Beverly Anns Cookie from being embroiled in disputes between franchisees regarding the condition or performance of equipment transferred during a franchise resale. However, it places the onus on the New Franchisee to conduct thorough due diligence on all assets being acquired from the Former Franchisee, including equipment, to ensure they meet the required standards and are in good working order. A prospective franchisee should carefully inspect all equipment and consider obtaining independent assessments before completing the purchase to avoid potential disputes later.