What is the franchisee required to do with the assets of a Beverly Anns Cookie franchise on the Closing Date?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
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 franchise via a transfer, they have already acquired the truck and any additional equipment, referred to as "Assets", as per Section 13.13 of the Franchise Agreement. This section is amended accordingly in the transfer agreement.
If any additional equipment is required for these Assets, the franchisee must purchase these items from Beverly Anns Cookie before operating the Assets. This ensures that the franchisee has all the necessary tools and equipment to run the franchise effectively from day one.
This arrangement streamlines the transfer process, as the franchisee doesn't need to go through the pre-opening and development obligations typically required for a new franchise. Instead, the focus is on ensuring that the existing assets are properly transferred and that any additional required equipment is purchased to maintain operational standards.