What is the initial term length for a Beverly Anns Cookie Franchise Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
The term of this Franchise Agreement will begin on the Effective Date and continue for 10 years ("Term"). If you would like to operate more than one GR Vehicle, you will be required to purchase an additional franchised business for each GR Vehicle and execute an additional franchise agreement. If this Franchise Agreement is the initial franchise agreement for your Franchised Business, you may enter into a maximum of two successor franchise agreements (a "Successor Franchise Agreement"), as long as you meet the conditions for renewal specified below. The Successor Franchise Agreement shall be the current form of franchise agreement we use in granting Beverly Ann's Cookie Truck franchises as of the expiration of the Term. The terms and conditions of the Successor Franchise Agreement may vary materially and substantially from the terms and conditions of this Franchise Agreement, including a higher Royalty. Each successor term will be ten years. If you are signing this Franchise Agreement as a Successor Franchise Agreement, the references to "Term" shall mean the applicable renewal term of the Successor Franchise Agreement. Except as otherwise provided in this Section, you will have no further right to operate your Franchised Business following the expiration of the successor term unless we grant you the rights to enter into another franchise agreement, in our sole discretion. If you are renewing a prior 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.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the initial term of the Franchise Agreement begins on the effective date and continues for 10 years. If a franchisee wants to operate more than one 'Grandma's Recipe Motor Vehicle' (GR Vehicle), they must purchase an additional franchised business for each GR Vehicle and execute an additional franchise agreement.
If the current agreement is the initial franchise agreement, the franchisee can enter into a maximum of two successor franchise agreements, provided they meet the renewal conditions. Each successor term will also be ten years. The terms and conditions of the Successor Franchise Agreement may differ significantly from the initial agreement, potentially including a higher royalty fee.
If the franchisee is signing the agreement as a Successor Franchise Agreement, the term refers to the applicable renewal term. Unless otherwise specified, the franchisee has no further right to operate the Franchised Business after the expiration of the successor term, unless Beverly Anns Cookie grants them the right to enter into another franchise agreement at their sole discretion. If the franchisee is renewing a prior agreement, the renewal provisions in the initial franchise agreement will determine the length of the term and the remaining rights to enter into Successor Franchise Agreements.