What initial fees are applicable under the Franchise Agreement for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee**") (each, a "Party" and together, the "Parties").
BACKGROUND
- A. Franchisor and Franchisee are parties to a Franchise Agreement ("Franchise Agreement") [dated/dated as of] 7/17/2025as a result of an approved transfer of a franchised business of Franchisor ("Franchised Business").
- B. Franchisor and Franchisee desire to amend the Franchise Agreement to reflect Franchisee's status as a transferee franchisee for the Franchised Business.
- C. All capitalized terms not otherwise defined in this Transfer Addendum shall have the meanings set forth in the Franchise Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties and subject to the following terms and conditions, it is agreed as follows:
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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.
- b. Because Franchisee is a transferee franchisee, Franchisee shall not be required to pay the Initial Franchise Fee. Section 6.6 of the Franchise Agreement is hereby amended accordingly.
- c. If Franchisee is an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall not be required to attend Initial Training and there shall be no Initial Training Deadline. Accordingly, Franchisor is under no obligation to provide Initial Training to Franchisee. If Franchisee is not an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall complete the initial training program contained in Item 11 and Franchise Agreement Section 8 prior to beginning operation of the Beverly Ann's Cookies franchise.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the initial franchise fee is waived for franchisees acquiring an already operating Beverly Anns Cookie business through a transfer. Specifically, Section 6.6 of the Franchise Agreement is amended to reflect that a transferee franchisee does not have to pay the initial franchise fee.
However, if the franchisee is not an existing franchisee within the Beverly Ann's Cookies system, they must complete the initial training program outlined in Item 11 and Section 8 of the Franchise Agreement. While the franchisee doesn't pay a direct fee for this training, any designated managers or additional personnel attending the initial training are responsible for covering their own hotel and transportation costs.
Furthermore, if a franchisee chooses to operate from a fixed location, they may incur additional costs. These include potential fees to Beverly Anns Cookie or its affiliates for modifications to the premises necessary to comply with local laws and ordinances. Additionally, the franchisee will be required to purchase an initial inventory of equipment, uniforms, and supplies from Beverly Anns Cookie or its affiliates, and these payments are non-refundable.