Can a Beverly Anns Cookie franchisee assign the equipment?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee**") (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. Section 6.6 of the Franchise Agreement is hereby amended accordingly.
- c.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Beverly Anns Cookie Franchise Disclosure Document, a franchisee's ability to assign equipment is addressed within the context of transferring a franchise to a new franchisee. Specifically, when a franchise is transferred, the new franchisee acquires the existing truck and any additional equipment, referred to as "Assets," as outlined in Section 13.13 of the Franchise Agreement.
This section is amended to reflect that the new franchisee already possesses these assets upon completion of the transfer. This implies that the equipment is transferred as part of the overall franchise transfer process. The franchisor's role is limited to approving the assignment and ensuring the new franchisee signs the required agreements.
However, the franchisor maintains no involvement in the transaction itself, meaning the terms of the equipment transfer are determined solely between the former and new franchisees. Any disputes regarding the equipment transfer are to be resolved between these two parties, without the franchisor's involvement. The former franchisee also represents that they have not previously assigned or disposed of any interest in the franchise agreement or franchised business.