What is the monetary penalty for the first violation of Beverly Anns Cookie's System standards?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ide services and sell products to customers located outside of the Territory without being subject to Territory Infringement under the following circumstance: (1) there is no other franchisee morin that area; (2) the customer initiates the contact with you; and (3) you first receive our express written consent, which may be withheld in our sole discretion. You are prohibited from directly marketing to or soliciting customers whose principal business office (or principal residence if the customer is an individual) is outside of your Territory unless we specify otherwise to you in writing. You agree that you must cease from marketing and soliciting or servicing customers upon our notice to you than an area has become the t
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a franchisee who infringes upon another franchisee's territory is subject to a fine for the first violation. The franchisee must pay Beverly Anns Cookie $1,000, in addition to the amount of revenue invoiced for the products or services sold during the infringement. This payment is due within five days after the infringement is proven.
Subsequent violations of territory infringement carry a higher penalty. For the second violation, and any violations thereafter, the franchisee will be fined $5,000 plus the amount of applicable products or services invoiced while infringing.
These fines are collected by Beverly Anns Cookie and become their sole property, to be distributed at their discretion. Violations are counted cumulatively over the life of the Franchised Business, regardless of when or where they occur, even including prior terms if it is a Successor Franchise Agreement. This means that a franchisee's history of violations will follow them, potentially leading to higher penalties for any future infringements, even if under a renewed agreement.