What is the minimum Misappropriated Brand Manual Fee for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ology Fee.
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- Misappropriated Brand Manual Fee. This fee is determined by taking our total revenue from our previous fiscal year, multiplied by the fraction which results from taking one divided by the current number of Beverly Ann's Cookie franchisees as of the date of the misappropriation, except that this fee will not, under any circumstances, be less th
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the minimum Misappropriated Brand Manual Fee is $30,000. This fee is levied if a franchisee loses, gives away, makes unauthorized copies, fails to return, or otherwise misappropriates the Brand Manual. The Brand Manual contains valuable intellectual property and trade secrets, and each franchisee receives one copy.
The fee is calculated based on Beverly Ann's Cookie's total revenue from the previous fiscal year, multiplied by a fraction derived from one divided by the current number of franchisees at the time of misappropriation. However, the FDD explicitly states that the fee will not be less than $30,000, regardless of the calculation.
This fee serves as liquidated damages to offset the losses Beverly Anns Cookie will incur due to the misappropriation of its Brand Manual. It is important for prospective franchisees to understand the importance of safeguarding the Brand Manual to avoid incurring this potentially substantial fee. Franchisees should also note that this fee is in addition to any other remedies that Beverly Anns Cookie may have under the Franchise Agreement.