Can a franchisee assign the Beverly Anns Cookie AFR Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Additional Franchise Reservation Agreement ("AFR Agreement") is made between Mobile Cookie Company, LLC ("us" or "we") and ("you") is made and entered into, 20 ("Effective Date"). |
|---|
| 1. |
| General Description of Agreement. This AFR Agreement sets out the terms and the conditions |
| under which we will reserve a Beverly Ann's Cookies |
| franchise and territory |
| (each, a "Reserved |
| Business"). |
| a. |
| In order to establish a Beverly Ann's Cookies |
| franchise, you will be required to enter into |
| a Franchise Agreement for the |
| Reserved Business, the form of which will be our then-current form |
| Franchise Agreement then being offered to new Beverly Ann's Cookies |
| franchisees (that |
| form of Franchise |
| Agreement is referred to in AFR Agreement |
| as the "Franchise Agreement"). |
| b. |
| You acknowledge and represent to us that you understand that this AFR Agreement |
| is not |
| a Franchise Agreement, and that you have no right to open a Beverly Ann's |
| Business |
| under this AFR |
| Agreement. |
| You will be permitted to open a Beverly Ann's Cookies |
| franchise |
| only if: (a) we approve you |
| to do so; (b) you and we sign a Franchise Agreement; and (c) you pay us all applicable initial fees that are |
| due under the Franchise Agreement. |
| 2. |
| Term. |
| The term of this AFR Agreement shall commence on the Effective Date and, unless |
| otherwise negotiated, terminated or extended as provided herein, shall continue until the earlier of (i) the |
| Expiration Date |
| (as defined in Section 5), or (ii) the date of execution of the Franchise Agreement for the |
| Reserved Business ("Term"). |
| 3. |
| Reserved Territory. The territory |
| covered under this AFR Agreement is referred to as the |
| "Reserved Territory." |
| The specific Reserved Territory |
| is: |
| Reserved Territory |
| Zip Codes |
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
The 2025 Beverly Anns Cookie Franchise Disclosure Document includes an Additional Franchise Reservation Agreement (AFR Agreement). This agreement outlines the terms and conditions under which Beverly Anns Cookie will reserve a franchise and territory for a potential franchisee.
The excerpt specifies that the AFR Agreement is not a Franchise Agreement and does not grant the right to open a Beverly Anns Cookie business. Opening a franchise is contingent upon approval by Beverly Anns Cookie, signing a Franchise Agreement, and paying all applicable initial fees.
However, the provided documentation does not explicitly state whether a franchisee can assign the AFR Agreement to another party. To determine if the AFR Agreement is assignable, a prospective Beverly Anns Cookie franchisee should review the full AFR agreement within the FDD and directly ask the franchisor about the possibility and conditions of assignment.