What is the relationship between the Additional Franchise Reservation Agreement and the Franchise Agreement for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ISEE: Rev. 031821
EXHIBIT H-5
BEVERLY ANN'S COOKIES FRANCHISE
ADDITIONAL FRANCHISE RESERVATION AGREEMENT
| This Additional Franchise Reservation Agreement ("AFR Agreement") is made between Mobile Cookie Company, LLC ("us" or "we") and ("you") is made and entered into, 20 ("Effective Date"). |
|---|
| 1. |
| General Description of Agreement. This AFR Agreement sets out the terms and the conditions |
| under which we will reserve a Beverly Ann's Cookies |
| franchise and territory |
| (each, a "Reserved |
| Business"). |
| a. |
| In order to establish a Beverly Ann's Cookies |
| franchise, you will be required to enter into |
| a Franchise Agreement for the |
| Reserved Business, the form of which will be our then-current form |
| Franchise Agreement then being offered to new Beverly Ann's Cookies |
| franchisees (that |
| form of Franchise |
| Agreement is referred to in AFR Agreement |
| as the "Franchise Agreement"). |
| b. |
| You acknowledge and represent to us that you understand that this AFR Agreement |
| is not |
| a Franchise Agreement, and that you have no right to open a Beverly Ann's |
| Business |
| under this AFR |
| Agreement. |
| You will be permitted to open a Beverly Ann's Cookies |
| franchise |
| only if: (a) we approve you |
| to do so; (b) you and we sign a Franchise Agreement; and (c) you pay us all applicable initial fees that are |
| due under the Franchise Agreement. |
| 2. |
| Term. |
| The term of this AFR Agreement shall commence on the Effective Date and, unless |
| otherwise negotiated, terminated or extended as provided herein, shall continue until the earlier of (i) the |
| Expiration Date |
| (as defined in Section 5), or (ii) the date of execution of the Franchise Agreement for the |
| Reserved Business ("Term"). |
| 3. |
| Reserved Territory. |
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 outlines the terms and conditions under which Mobile Cookie Company, LLC will reserve a Beverly Ann's Cookies franchise and territory. The document states that to establish a Beverly Ann's Cookies franchise, the franchisee will be required to enter into a Franchise Agreement for the Reserved Business.
This agreement reserves a specific territory for a potential franchisee, giving them time to make a final decision about opening a Beverly Anns Cookie franchise. The Additional Franchise Reservation Agreement ensures that the territory will not be offered to other potential franchisees during the reservation period.
The agreement also stipulates that if the franchisee fails to sign a Franchise Agreement within one year from the effective date of the Additional Franchise Reservation Agreement, they may be granted a right of first refusal for the reserved territory. However, this right expires 12 months after the initial deadline or upon the execution of a Franchise Agreement for the Reserved Business. If another qualified prospective franchisee applies to operate a Beverly Ann's Business in the Reserved Territory after the deadline, the original applicant 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.