What happens if a Beverly Anns Cookie franchisee fails to take required actions?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to purchase a Beverly Ann's Cookies franchise for the Reserved Territory during the term, you will not be able to enter into another agreement to reserve the Reserved Territory.
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- Deadline. You must sign a Franchise Agreement for your Reserved Business for the Reserved Territory no later than one year from the Effective Date ("Deadline").
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- Right of First Refusal. If you do not meet the Deadline for any reason, we will allow you a right of first refusal for the Reserved Territory ("ROFR") subject to the restrictions contained in this Section. This ROFR will shall expire on the earlier of the execution of a Franchise Agreement for the Reserved Business, or 12 months after the Deadline ("Expiration Date"). If, after the Deadline, a qualified prospective franchisee has applied to operate a Beverly Ann's Business in the Reserved Territory, then we
will provide to you (i) written notification stating the same and (ii) the then-current Franchise Disclosure Document and franchise agreement ("Franchisor's Notice"). You will have twenty days from the receipt of Franchisor's Notice to sign a Franchise Agreement for the Reserved Territory and pay the applicable fees.
You will forfeit your ROFR upon the occurrence of the earlier of the occurrence of any of the following: (1) you indicate in writing that you do not want to exercise this ROFR; and (2) you decline to exercise your rights under this Section within the twenty day period described above.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, consequences for failing to take required actions depend on the specific context. If a franchisee fails to purchase a Beverly Ann's Cookies franchise for a reserved territory within the specified term, they will lose the ability to enter into another agreement for that territory.
However, Beverly Anns Cookie will grant a right of first refusal (ROFR) for the reserved territory, which expires 12 months after the deadline or upon execution of a franchise agreement for the reserved business. If another qualified prospective franchisee applies to operate in the reserved territory after the deadline, Beverly Anns Cookie will notify the original franchisee, providing them with the current Franchise Disclosure Document and franchise agreement. The original franchisee then has 20 days from receipt of this notice to sign a franchise agreement and pay the applicable fees.
The franchisee forfeits their ROFR if they decline it in writing or fail to exercise their rights within the 20-day period. This ensures that Beverly Anns Cookie can move forward with other interested parties if the original franchisee does not meet the obligations or deadlines.