What is the length of each renewal term for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement/Additional Franchise Reservation Agreement | Summary |
|---|---|---|
| (a) Length of the Franchise term | Section 5.1/Not Applicable | Ten years. |
| (b) Renewal or extension of the term | Section 5.1/Not Applicable | If you are in good standing and you meet other requirements, you may apply for two successive terms of ten years. |
| (c) Requirements for Franchisee to renew or extend | Section 5.2/Not Applicable | The term "renewal" refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. Written notice must be provided and you must be fully compliant with the Franchise Agreement. You must sign our then-current Franchise Agreement and ancillary documents for the successor term, and this new franchise agreement may have materially different terms and conditions (including, e.g., higher royalty and advertising contributions) from the Franchise Agreement that covered your original term. You will be required to pay the highest tier of royalty payment under the new franchise agreement (meaning that you will not be able to take advantage of any step-up royalty schedules that may be offered to new franchisees). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the length of the initial franchise term is ten years. If a franchisee is in good standing and meets other requirements, they may apply for two successive renewal terms, each lasting ten years.
To renew the franchise, the franchisee must provide written notice and be fully compliant with the existing Franchise Agreement. A significant point to consider is that the franchisee must sign the then-current Franchise Agreement and ancillary documents for the successor term. This new agreement may contain materially different terms and conditions, potentially including higher royalty and advertising contributions, compared to the original agreement.
Furthermore, the renewing franchisee will be required to pay the highest tier of royalty payment under the new franchise agreement. This means they cannot take advantage of any step-up royalty schedules that might be offered to new franchisees. This could impact the profitability of the franchise during the renewal terms, as royalty payments could be higher than what was initially paid.