What is the Beverly Anns Cookie franchisee agreeing to regarding the equipment being used in as-is condition?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
n MOBILE COOKIE COMPANY, LLC, a Delaware limited liability company ("Franchisor") and [Entity Name], d/b/a ["DBA Name"], a(n) [state] [type of entity] ("Franchisee") (each, a "Party" and together, the "Parties").
BACKGROUND
- A. Franchisor and Franchisee are parties to a Franchise Agreement ("Franchise Agreement") [dated/dated as of] 7/17/2025as a result of an approved transfer of a franchised business of Franchisor ("Franchised Business").
- B. Franchisor and Franchisee desire to amend the Franchise Agreement to reflect Franchisee's status as a transferee franchisee for the Franchised Business.
- C. All capitalized terms not otherwise defined in this Transfer Addendum shall have the meanings set forth in the Franchise Agreement.
AGREEMENT
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.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee is acquiring an already operating Beverly Ann's Cookies franchise through a transfer, the franchisee acknowledges that they are acquiring the truck and any additional equipment, referred to as "Assets", in its current condition.
This means that Beverly Ann's Cookie is not obligated to provide any upgrades, repairs, or modifications to bring the equipment up to current standards. The franchisee is responsible for assessing the condition of the equipment and factoring any necessary repairs or replacements into their investment decision.
This arrangement differs from a new franchise setup, where the franchisee would typically receive new or refurbished equipment meeting specific operational standards. A prospective Beverly Ann's Cookie franchisee should carefully inspect all equipment and negotiate the purchase price accordingly, considering the potential costs of bringing the equipment up to standard.