Is a Beverly Anns Cookie franchisee required to furnish copies of company documents?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1.2 Company Documents. At our request, you will furnish copies of all documents and contracts governing the rights and obligations of your Owners (such as, Articles of Incorporation or Organization and partnership, operating or shareholder agreements or similar documents, the "Company Documents"). You will not alter, change, or amend your Company Documents, without obtaining our prior written approval, which approval we will not unreasonably deny or withhold, and will grant if such changes will not prevent you from performing your obligations under this Franchise Agreement.
- 3.1.3 Transfer Restrictions. Your Company Documents will recite that this Franchise Agreement restricts the issuance and transfer of any ownership interests in you, and all certificates and other documents representing ownership interests in you will bear a legend referring to this Franchise Agreement's restrictions.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, franchisees are required to furnish copies of company documents under certain circumstances. Specifically, at the franchisor's request, a franchisee must provide copies of all documents and contracts governing the rights and obligations of the franchisee's owners. These documents may include Articles of Incorporation or Organization, partnership agreements, operating agreements, shareholder agreements, or similar documents, collectively referred to as "Company Documents."
Beverly Anns Cookie also mandates that franchisees cannot alter, change, or amend their Company Documents without obtaining prior written approval from the franchisor. This approval will not be unreasonably denied or withheld, especially if the changes do not prevent the franchisee from fulfilling their obligations under the Franchise Agreement. This provision ensures that the franchisor maintains oversight of the franchisee's organizational structure and compliance with the franchise agreement.
Furthermore, the franchisee's Company Documents must state that the Franchise Agreement restricts the issuance and transfer of any ownership interests in the franchisee's entity. All certificates and other documents representing ownership interests must include a reference to these restrictions outlined in the Franchise Agreement. This requirement is designed to protect the franchisor's interests by controlling ownership changes within the franchise system.