What is the purpose of Beverly Anns Cookie reviewing the proposed purchase agreement during a transfer?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
the future operation of the Franchised Business.
- 16.4.3 Monetary Obligations. All of your monetary obligations to us and our affiliates have been paid in full and you and the Owners are in full compliance with the terms of this Franchise Agreement and all other agreements with us or our affiliate(s).
- 16.3.5 Compliance with Franchise Agreement. You have not violated any provision of this Franchise Agreement or any other agreement with us during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer.
- 16.3.6 Training. The transferee has (or if the transferee is an Entity, its approved Managing Owner and any Franchise Manager have) successfully completed, or made arrangements to attend, the initial training program (and the transferee has paid us the training fee for each new person who must attend training).
- 16.3.7 Licenses and Permits. The transferee and its owners, to the extent necessary, have obtained all licenses and permits required by applicable law to own and operate the Franchised Business.
- 16.3.8 New Franchise Agreement. You must request that the transferee be provided with our then-current form of franchise disclosure document. You agree that we will not be liable for any representations that you or your Owners make that are inconsistent with such franchise disclosure document. The transferee and its owners sign our then-current form of franchise agreement and related
documents, including, but not limited to, our then-current form of Franchise Owner Agreement or other guaranty (unless we, in our sole discretion, instruct you to assign this Franchise Agreement to the transferee), except that: (i) the Term and successor term(s) shall be the Term and successor term(s) remaining under this Franchise Agreement; and (ii) the transferee does not need to pay a separate initial franchise fee.
- 16.3.9 Transfer Fee. You pay us a transfer fee of: (i) $7,500 if the transferee is an existing Beverly Ann's Cookie Truck franchisee;
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Beverly Anns Cookie does not explicitly state that they review the proposed purchase agreement during a transfer. However, the document does state several conditions and requirements that must be met during a transfer.
Specifically, the franchisee must ensure the transferee receives the most current franchise disclosure document. The transferee must sign the current form of the franchise agreement. The transferring franchisee is also responsible for paying a transfer fee, which is either $7,500 or $10,000 depending on whether the transferee is an existing franchisee, plus $1,000 for each piece of additional equipment transferred. If Beverly Anns Cookie referred the lead, the franchisee must pay Beverly Anns Cookie $15,000 in addition to the transfer fee.
Additionally, the franchisee and their owners must sign a general release of claims against Beverly Anns Cookie. The franchisor also retains the right of first refusal. These stipulations suggest that Beverly Anns Cookie maintains significant oversight and control over franchise transfers to protect its interests and ensure compliance with its standards and agreements.