How will Beverly Anns Cookie notify franchisees of any CPI adjustment to fees?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Also, any fee expressed as a fixed dollar amount is subject to adjustment based on changes to the Consumer Price Index ("CPI") in the United States. We may periodically review and increase these fees based on changes to the CPI (in addition to any other increase). We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective. We will implement no more than one CPI-related fee adjustment during any calendar year. Unless we have indicated otherwise, for any fee that is listed as our then-current fee in table above, we will limit the annual increase to the greater of: (a) a maximum of 8% per year, calculated cumulatively each year; or (b) the amount of any increases in fees from third parties for the underlying products or services.
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 franchisor will notify franchisees of any Consumer Price Index (CPI) adjustments to fixed dollar amount fees at least 60 days before the adjustment takes effect. Beverly Anns Cookie will only implement one CPI-related fee adjustment during any calendar year.
This advance notice allows franchisees time to prepare for the increased expense. It is a fairly standard practice to adjust fees based on CPI to account for inflation, but the 60-day notification period provides some financial planning predictability for franchisees.
In addition to CPI adjustments, Beverly Anns Cookie may also increase fees based on other factors. For fees listed as the then-current fee, the annual increase is limited to the greater of 8% per year (calculated cumulatively) or the amount of any increases in fees from third parties for the underlying products or services. This provides some cap on fee increases beyond CPI, but franchisees should still budget for potential increases.