What is the 'New Franchise Agreement' in the context of a Beverly Anns Cookie franchise transfer?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
New Franchise Agreement.
New Franchisee shall execute the New Franchise Agreement for the Franchised Business (as amended by the form of Addendum prescribed by Franchisor, if applicable), and any other required contracts for the operation of a Beverly Ann's Cookies franchise as stated in Franchisor's Franchise Disclosure Document.
Former Franchisee's Contact Information.
Former Franchisee agrees to keep Franchisor informed of its current address and telephone number at all times during the three-year period following the execution of this Agreement.
Acknowledgement by New Franchisee.
New Franchisee acknowledges and agrees that the purchase of the rights to the Franchised Business ("Transaction") occurred solely between Former Franchisee and New Franchisee.
New Franchisee also acknowledges and agrees that Franchisor played no role in the Transaction and that Franchisor's involvement was limited to the approval of Requested Assignment and any required actions regarding New Franchisee's signing of the New Franchise Agreement for the Franchised Business.
New Franchisee agrees that any claims, disputes, or issues relating New Franchisee's acquisition of the Franchised Business from Franchisee are between New Franchisee and Former Franchisee, and shall not involve Franchisor.
Representation.
Former Franchisee warrants and represents that it has not heretofore assigned, conveyed, or disposed of any interest in the Former Franchise Agreement or Franchised Business.
New Franchisee hereby represents that it received Franchisor's Franchise Disclosure Document and did not sign the New Franchise Agreement or pay any money to Franchisor or its affiliate for a period of at least 14 calendar days after receipt of the Franchise Disclosure Document.
Notices.
Any notices given under this Agreement shall be in writing, and if delivered by hand, or transmitted by U.S. certified mail, return receipt requested, postage prepaid, or via telegram or telefax, shall be deemed to have been given on the date so delivered or transmitted, if sent to the recipient at its address or telefax number appearing on the records of the sending party.
Further Actions.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, a new franchisee must execute a 'New Franchise Agreement' when acquiring an existing Beverly Anns Cookie franchise through a transfer. This agreement, potentially amended by a franchisor-prescribed addendum, formalizes the franchise relationship between Beverly Anns Cookie and the new franchisee. It also includes any other required contracts for operating a Beverly Ann's Cookies franchise, as outlined in the Franchise Disclosure Document.
This 'New Franchise Agreement' essentially replaces the agreement with the former franchisee, establishing the new franchisee's rights and obligations. The franchisor's involvement in the transfer is limited to approving the assignment and ensuring the new franchisee signs this agreement. Any issues regarding the acquisition of the franchise business are solely between the former and new franchisees, with Beverly Anns Cookie maintaining no responsibility.
Before signing the 'New Franchise Agreement' or paying any fees to Beverly Anns Cookie, the new franchisee must receive the Franchise Disclosure Document at least 14 calendar days prior. This waiting period allows the franchisee to carefully review the terms and conditions before committing to the franchise. Both the former and new franchisees must take necessary actions to fulfill the agreement's terms, as required or contemplated by the original franchise agreement.
In summary, the 'New Franchise Agreement' is a critical document in the transfer process, ensuring a clear legal framework for the new franchisee's operation of the Beverly Anns Cookie business. It is accompanied by a Franchise Agreement Transfer Addendum, effective as of July 17, 2025, which formally recognizes the franchisee's status as a transferee. This addendum amends the original Franchise Agreement to reflect the transfer and the franchisee's new role.