What is the nature of the obligations in Section 4 for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1.1 Authority. You have the authority to execute, deliver, and perform your obligations under this Franchise Agreement and all related agreements and are duly organized or formed, validly existing, and in good standing under the laws of the state of your incorporation or formation.
- 3.1.2 Company Documents. At our request, you will furnish copies of all documents and contracts governing the rights and obligations of your Owners (such as, Articles of Incorporation or Organization and partnership, operating or shareholder agreements or similar documents, the "Company Documents"). You will not alter, change, or amend your Company Documents, without obtaining our prior written approval, which approval we will not unreasonably deny or withhold, and will grant if such changes will not prevent you from performing your obligations under this Franchise Agreement.
- 3.1.3 Transfer Restrictions. Your Company Documents will recite that this Franchise Agreement restricts the issuance and transfer of any ownership interests in you, and all certificates and other documents representing ownership interests in you will bear a legend referring to this Franchise Agreement's restrictions.
- 3.1.4 Naming. You agree not to use the name "Beverly Ann's Cookie Truck" or any similar wording in the name of your Entity.
- 3.1.5 Owner Identification. You certify that Attachment B to this Franchise Agreement completely and accurately describes all of your Owners and their interests in you as of the Effective Date. You agree to sign and deliver to us a revised Attachment B to reflect any permitted changes in the information that Attachment B now contains.
- 3.1.6 Single Purpose Entity. The Franchised Business will be the only business that the Entity may operate, and your organizational documents must reflect this (although the Owners in the Entity
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Section 4 of the Beverly Anns Cookie franchise agreement outlines several obligations for the franchisee. It details the franchisee's responsibilities regarding the legal and operational structure of their business.
Specifically, the franchisee must have the authority to execute the Franchise Agreement and maintain good legal standing. They are required to provide copies of company documents outlining the rights and obligations of the owners and must obtain franchisor approval before altering these documents. The franchisee's company documents must also state that the agreement restricts the issuance and transfer of ownership interests, with corresponding legends on ownership certificates.
Additionally, franchisees cannot use "Beverly Ann's Cookie Truck" or similar wording in their entity's name and must accurately identify all owners and their interests in Attachment B of the Franchise Agreement. The franchised business must be the only business operated by the entity, a stipulation that must be reflected in the organizational documents. These obligations ensure that the franchisee operates within the legal and brand standards set by Beverly Anns Cookie.