What is the purpose of the Additional Franchise Reservation Agreement for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to purchase a Beverly Ann's Cookies franchise for the Reserved Territory during the term, you will not be able to enter into another agreement to reserve the Reserved Territory.
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- Deadline. You must sign a Franchise Agreement for your Reserved Business for the Reserved Territory no later than one year from the Effective Date ("Deadline").
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- Right of First Refusal. If you do not meet the Deadline for any reason, we will allow you a right of first refusal for the Reserved Territory ("ROFR") subject to the restrictions contained in this Section. This ROFR will shall expire on the earlier of the execution of a Franchise Agreement for the Reserved Business, or 12 months after the Deadline ("Expiration Date"). If, after the Deadline, a qualified prospective franchisee has applied to operate a Beverly Ann's Business in the Reserved Territory, then we
will provide to you (i) written notification stating the same and (ii) the then-current Franchise Disclosure Document and franchise agreement ("Franchisor's Notice"). You will have twenty days from the receipt of Franchisor's Notice to sign a Franchise Agreement for the Reserved Territory and pay the applicable fees.
You will forfeit your ROFR upon the occurrence of the earlier of the occurrence of any of the following: (1) you indicate in writing that you do not want to exercise this ROFR; and (2) you decline to exercise your rights under this Section within the twenty day period described above.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the Additional Franchise Reservation Agreement allows a prospective franchisee to reserve a specific territory for their future Beverly Ann's Cookies franchise.
The agreement stipulates that the franchisee must sign a Franchise Agreement for the reserved territory within one year from the effective date of the reservation agreement. If the franchisee fails to meet this deadline, Beverly Anns Cookie grants them a right of first refusal (ROFR) for the reserved territory. This ROFR expires either upon the execution of a Franchise Agreement for the reserved business or 12 months after the initial deadline.
If, after the initial deadline, Beverly Anns Cookie receives an application from another qualified prospective franchisee for the reserved territory, the company will notify the original applicant, providing them with the current Franchise Disclosure Document and franchise agreement. The original applicant then has twenty days from receipt of this notice to sign a Franchise Agreement and pay the applicable fees.
The ROFR is forfeited if the applicant indicates in writing that they do not want to exercise it or if they decline to exercise their rights within the twenty-day period. This agreement ensures that Beverly Anns Cookie can move forward with other potential franchisees if the initial applicant is unable or unwilling to commit within the specified time frame, while still giving the initial applicant a chance to secure the territory.