factual

Must the GR Vehicle of a Beverly Anns Cookie franchise be in compliance with current standards for renewal?

Beverly_Anns_Cookie Franchise · 2025 FDD

Answer from 2025 FDD Document

r franchise agreement with us under this Franchise Agreement, the renewal provisions in your initial franchise agreement will dictate the length of the Term of this Franchise Agreement, and your remaining rights to enter into Successor Franchise Agreements, if any.

Renewal Requirements

To enter into a Successor Franchise Agreement, you must:

  • 5.2.1 Notice. Notify us in writing of your desire to enter into a Successor Franchise Agreement not less than six months nor more than twelve months before the expiration of the Term;
  • 5.2.2. No Defaults. Not be in default under this Franchise Agreement or any other agreement with us or any affiliate of ours at the time you send the renewal notice or the time you sign the Successor Franchise Agreement or on the date on which the term of the Successor Franchise would commence and you must not have received more than three separate written notices of default from us in the previous term;
  • 5.2.3 Modifications. Have the right to maintain possession of your GR Vehicle and, if your GR Vehicle is not in compliance with our current standards you must either: (i) replace, remodel, repair and/or upgrade the GR Vehicle (and any Additional Equipment) you have for your Franchised Business in accordance with Section 13.4 of this Franchise Agreement, as well as add or replace improvements, assets, signage, and otherwise modify the Franchised Business as we require to comply with our then-current System standards for new Beverly Ann's Cookie Truck franchised businesses at your sole cost and expense;
  • 5.2.4 Successor Franchise Agreement. Sign the Successor Franchise Agreement and all ancillary documents we require franchisees to sign;
  • 5.2.5 General Release.

Source: Item 23 — RECEIPTS (FDD pages 57–235)

What This Means (2025 FDD)

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, to enter into a Successor Franchise Agreement, franchisees must have the right to maintain possession of their GR Vehicle. However, if the GR Vehicle is not in compliance with Beverly Ann's Cookie's current standards, the franchisee must either replace, remodel, repair, and/or upgrade the GR Vehicle (and any Additional Equipment). This must be done in accordance with Section 13.4 of the Franchise Agreement. Franchisees must also add or replace improvements, assets, signage, and otherwise modify the Franchised Business as Beverly Ann's Cookie requires to comply with their then-current System standards for new Beverly Ann's Cookie franchised businesses, all at the franchisee's sole cost and expense.

This means that a Beverly Anns Cookie franchisee seeking to renew their franchise agreement must ensure their GR Vehicle meets the current brand standards. If the vehicle does not meet these standards, the franchisee will be responsible for the costs associated with bringing the GR Vehicle up to standard, which may include replacement, remodeling, repairs, or upgrades. This requirement ensures that all Beverly Ann's Cookie franchises maintain a consistent brand image and quality, which is a common practice in franchising.

The franchisor will notify the franchisee within six months after receiving the notice of intent to renew, regarding their decision to grant a Successor Franchise Agreement; grant a Successor Franchise Agreement on the condition that the franchisee corrects existing deficiencies; not grant a Successor Franchise Agreement based on the determination that the franchisee or their Owners have not fully complied with the Franchise Agreement; or not grant a Successor Franchise Agreement because they no longer maintain a franchise program for Beverly Ann's Cookie Truck franchises. If applicable, the notice will describe the remodeling, expansion, improvements, and/or modifications required to bring the Franchised Business, the GR Vehicle (and any Additional Equipment) into compliance with Beverly Ann's Cookie franchised businesses, and state the actions the franchisee must take to correct operating deficiencies and the time in which the franchisee must correct these deficiencies.

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.