What is the Misappropriated Brand Manual Fee for a Beverly Anns Cookie franchisee?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Misappropriated Brand Manual Fee(7) | Will vary under the circumstances | On demand | Our "Brand Manual" contains valuable intellectual property and trade secrets. Each franchisee will get one copy of the Brand Manual. If you lose, give away, make unauthorized copies, fail to return or otherwise misappropriate all or some of the Brand Manual, you must pay us liquidated damages according to the formula listed in Note 6 to offset the damages that we will incur as a result of this misappropriation. |
| Non-Compliance Fee | $1,000 for the first violation; $5,000 if violation is not corrected within 30 days; and $5,000 for the second violation. | As incurred | This fee is assessed if we notify you that you are failing to follow our System Standards (defined in Item 8), failing to use the approved or required suppliers or products, failing to comply with the provisions of the Franchise Agreement or failing to follow the provisions of our Brand Manual. This fee is in addition to any and all remedies that we have available under the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the Misappropriated Brand Manual Fee varies depending on the circumstances. If a franchisee loses, gives away, makes unauthorized copies, fails to return, or otherwise misappropriates the Brand Manual, they must pay liquidated damages.
The fee is calculated based on Beverly Ann's Cookie's total revenue from the previous fiscal year, multiplied by a fraction. The fraction is derived by dividing one by the current number of Beverly Ann's Cookie franchisees as of the date of the misappropriation. However, the minimum fee is $30,000, regardless of the calculation.
This fee is intended to offset the damages Beverly Anns Cookie will incur as a result of the misappropriation of their Brand Manual, which contains valuable intellectual property and trade secrets. Each franchisee receives one copy of the Brand Manual, and it is crucial to safeguard it to avoid incurring this potentially substantial fee.