factual

What is the obligation of a Beverly Anns Cookie franchisee regarding increases in fees from third-party providers?

Beverly_Anns_Cookie Franchise · 2025 FDD

Answer from 2025 FDD Document

We also reserve the right to enter into a master software or technology license agreement with a third-party licensor and then sublicense the software or technology to you, in which case we may charge you for all amounts we must pay to the licensor based on your use of the software or technology.

Source: Item 23 — RECEIPTS (FDD pages 57–235)

What This Means (2025 FDD)

According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, franchisees may be subject to increased costs related to third-party software or technology. Beverly Anns Cookie reserves the right to enter into master license agreements with third-party licensors for software or technology. If Beverly Anns Cookie sublicenses this software or technology to franchisees, they may charge the franchisee the amounts that Beverly Anns Cookie must pay to the licensor, based on the franchisee's usage.

This means that if the fees Beverly Anns Cookie pays to a third-party licensor increase, those increased costs could be passed on to the franchisee. The franchisee's costs for using required software or technology could fluctuate based on the terms of Beverly Anns Cookie's agreements with outside vendors.

As a prospective franchisee, it would be prudent to ask Beverly Anns Cookie about the typical costs of these third-party software or technology licenses, how frequently these costs have changed in the past, and what mechanisms are in place to control or limit cost increases passed on to franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.