By how much can Beverly Anns Cookie change the payment due to changes in equipment configuration?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee desires to purchase the following Additional Equipment for use in the Protected Territory and shall pay the Additional Equipment Royalty listed for such equipment under the Franchise Agreement and this Amendment for so long as Franchisee owns the Additional Equipment.
Franchisee must present evidence to Franchisor, as required by Franchisor in its sole discretion, that Franchisee no longer owns the Additional Equipment prior to Franchisee being excused from paying any further Additional Equipment Royalties. Franchisee shall not be entitled to receive a refund on any Additional Equipment Royalty paid. Franchisee acknowledges and agrees that the Additional Equipment Royalty may increase upon renewal of the Franchise Agreement and agrees to pay Franchisor the thencurrent Royalty amount upon any such renewal.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Beverly Anns Cookie franchisees have the option to purchase additional equipment for use in their protected territory. The franchisee will pay an additional equipment royalty for as long as they own the additional equipment.
According to the amendment to the franchise agreement, the additional equipment royalty may increase upon renewal of the franchise agreement. The franchisee agrees to pay Beverly Anns Cookie the then-current royalty amount upon any such renewal.
However, the FDD does not specify a limit to how much Beverly Anns Cookie can increase the additional equipment royalty upon renewal. A prospective franchisee should inquire about the typical amount or percentage by which this royalty has increased in the past to better understand potential future costs.