Does Beverly Anns Cookie provide any warranties on the equipment?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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If this box is marked, then under the terms of your Loan, you are required to carry adequate insurance coverage on financed equipment. Your insurance certificate is required prior to us funding your vendor. Homeowners Policies will not cover commercial financing. YOUR LOAN MAY NOT BE FUNDED UNTIL WE RECEIVE THIS INFORMATION.
Please provide a Certificate of Insurance showing the following:
- Above referenced Agreement #
- Name of the Insurance Company and Policy Number
- Effective and Expiration Date of Coverage.
- INSURED PARTY: The Borrower(s) listed above must be named as Insured.
- PHYSICAL DAMAGE INSURANCE: Lender must be named Loss Payee against any loss including fire, theft and any other standard peril normally covered under a commercial policy for an amount not less than the replacement cost of the equipment.
- LENDER AS LOSS PAYEE/ADDITIONAL INSURED
- DESCRIPTION OF EQUIPMENT: A description of equipment covered (including serial numbers) must be listed on or attached to the Certificate of Insurance.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not clear whether Beverly Anns Cookie provides any explicit warranties on the equipment franchisees purchase. While Exhibit H-12 discusses the purchase of "Additional Equipment" and Exhibit H-13 mentions the acquisition of a truck and additional equipment, neither amendment specifies any warranty terms.
However, Exhibit H-7, regarding a loan and security agreement with Auxilior Capital Partners, indicates that if the provided box is marked, the franchisee is required to carry adequate insurance coverage on financed equipment. This insurance must cover physical damage, including fire, theft, and other standard perils, for an amount not less than the replacement cost of the equipment. The lender must also be named as a loss payee and additional insured, and a description of the equipment, including serial numbers, must be listed on the Certificate of Insurance.
Prospective Beverly Anns Cookie franchisees should inquire with the franchisor about any warranties on equipment, as well as the typical lifespan and maintenance requirements. Understanding the warranty coverage, if any, and the insurance requirements will help franchisees budget for potential equipment repairs or replacements.