factual

Is a Beverly Anns Cookie franchisee entitled to a refund on any Additional Equipment Royalty paid?

Beverly_Anns_Cookie Franchise · 2025 FDD

Answer from 2025 FDD Document

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)

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, a franchisee is not entitled to a refund on any Additional Equipment Royalty paid. However, a franchisee will be excused from paying further Additional Equipment Royalties if they no longer own the Additional Equipment. To stop paying the royalty, the franchisee must present evidence to Beverly Anns Cookie, as required by Beverly Anns Cookie in its sole discretion, that they no longer own the Additional Equipment.

This means that while franchisees must continue paying royalties on additional equipment as long as they own it, they cannot get a refund of royalties already paid if they later dispose of the equipment. This policy is clearly outlined in the franchise agreement to avoid any ambiguity.

It is important for prospective Beverly Anns Cookie franchisees to consider this policy when deciding whether to purchase additional equipment. They should carefully evaluate the potential benefits of the equipment against the ongoing royalty obligations, understanding that these royalties are non-refundable even if the equipment is no longer in use.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.