What does 'Owner(s)' mean in the context of the Beverly Anns Cookie Franchise Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
- 3.1.5 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.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the term 'Owners' refers to individuals or entities that hold ownership interests in the franchisee's business. Specifically, if the franchisee is a corporation, partnership, or other legal entity, the 'Owners' are those who possess rights and obligations as defined by the company's governing documents.
Beverly Anns Cookie requires franchisees to provide copies of all documents and contracts that govern the rights and obligations of the Owners, such as Articles of Incorporation or Organization, partnership agreements, operating agreements, or shareholder agreements. These documents, collectively referred to as 'Company Documents,' must be furnished upon request. Furthermore, franchisees are restricted from altering, changing, or amending these Company Documents without prior written approval from Beverly Anns Cookie, which will not be unreasonably withheld if the changes do not impede the franchisee's ability to fulfill their obligations under the Franchise Agreement.
The Franchise Agreement also stipulates that the franchisee's Company Documents must acknowledge the restrictions on the issuance and transfer of ownership interests. Certificates and other documents representing ownership interests must bear a legend referencing these restrictions. Additionally, Beverly Anns Cookie requires franchisees to identify all Owners and their respective interests in Attachment B to the Franchise Agreement, ensuring that this information is kept current and accurate through revised attachments as changes occur. This comprehensive approach allows Beverly Anns Cookie to maintain oversight and control over the ownership structure of its franchises, safeguarding the brand and system standards.