Is a Beverly Anns Cookie franchisee entitled to reduce or set-off against payment for any reason?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
You will also be required to purchase an initial inventory of Beverly Ann's Cookies equipment, uniforms, and supplies from us or our affiliates when you lease or purchase the Premises. These payments are non-refundable.
Franchisee must present evidence to Franchisor, as required by Franchisor in its sole discretion, that Franchisee no longer owns the Additional Equipment prior to Franchisee being excused from paying any further Additional Equipment Royalties. Franchisee shall not be entitled to receive a refund on any Additional Equipment Royalty paid.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Beverly Anns Cookie Franchise Disclosure Document, there is no mention of a franchisee's entitlement to reduce or set-off against payments owed to the franchisor. The document does specify that payments for initial inventory and equipment are non-refundable. Additionally, franchisees are not entitled to a refund on any Additional Equipment Royalty paid.
Several exhibits outline specific agreements and amendments to the franchise agreement, such as those related to additional equipment, fixed locations, and confidentiality. These exhibits detail the obligations and responsibilities of the franchisee, including payment terms and conditions. However, none of these provisions grant the franchisee the right to reduce or set-off payments for any reason.
Given the absence of any clause allowing for payment reduction or set-off, a prospective Beverly Anns Cookie franchisee should clarify with the franchisor under what specific circumstances, if any, a reduction in payment might be considered. Understanding the payment obligations and any potential exceptions is crucial before entering into a franchise agreement.
It is typical in franchising that payment terms are strictly defined, and franchisees have limited ability to unilaterally reduce or set-off payments. Therefore, the Beverly Anns Cookie franchise agreement appears to align with standard industry practice in this regard.