What is the relationship between the Beverly Anns Cookie franchisee's obligations (Item 9) and the restrictions on sources of services and products (Item 8)?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
System Standards
To ensure the highest degree of quality and service is maintained, you must operate the Beverly Ann's Business in strict conformity with the methods, standards, and specifications ("System Standards") we list in our proprietary and confidential operating manual ("Brand Manual"), which may exist in various parts, locations, and formats, and may include a combination of audio, video, written material, electronic media, website content, and/or software components. Our Brand Manual will include our "Success Guide" and may also include other written components.
System Standards may regulate, among other things, the types, models, and brands of supplies, equipment, furnishings, and signs; services, products, and supplies the Beverly Ann's Cookie Franchise must offer; unauthorized and prohibited services and products; inventory requirements; and designated and approved suppliers of these items. You must not: (i) deviate from these methods, standards, and specifications without our prior written consent, or (ii) otherwise operate in any manner which reflects adversely on our Marks or the System. Your Beverly Ann's Cookie Franchise must prepare and sell only the products that we designate and approve. We have the right to periodically make modifications to these products and you agree to comply with these modifications. You may not offer or sell any other product or service without our prior written consent. Establishing and enforcing System Standards are the mechanism by which we maintain the quality and consistency of the Beverly Ann's brand. If any product dispensed at your Beverly Ann's Business violates our System Standards or any applicable laws or regulations, or poses a health risk to the public, we may require that you immediately close your Beverly Ann's Business and not reopen until approved to do so by us after our inspection. In order to protect the public from any risk of harm and to protect the goodwill and reputation of the System, we may seek
immediate injunctive relief seeking an order to close your Beverly Ann's Business if you fail to close your Beverly Ann's Business upon our request.
We will notify you of new or modified specifications, standards, and guidelines through periodic amendments or supplements to the Brand Manual or through written communication (including electronic communication). We will issue copies of our standards and specifications to you unless these standards and specifications contain our confidential information. We may require you to remodel and modernize the GRM/GRT, at your sole expense, so that the GRM/GRT reflects our then-current System Standards as to image and quality.
You must use the computer hardware and software, including the point-of-sale system and vendor that we periodically designate to operate your Beverly Ann's Cookie Franchise (currently Square). You must obtain the computer hardware, software licenses, maintenance and support services, and other related services that meet our specifications from the suppliers we specify.
GRM/GRT
You must maintain the appearance of the GRM/GRT in accordance with our System Standards which will require updates and the purchase of a new GRM/GRT based on the age and condition of the GRM/GRT. You will be required to update the GRM/GRT appearance as follows: (1) every seven years; (2) upon the execution of successor franchise agreement for a Beverly Ann's Cookie Franchise with a GRM/GRT that has not completed the required remodels or is not in compliance with current standards; (3) for the transfer of a Beverly Ann's Business with a GRM/GRT that has not completed the required remodels; or (4) for a GRM/GRT that is not in compliance with current standards. See Item 11 for more information. You must use our approved supplier for the window tinting, wrapping and upfitting of your GRM/GRT.
What This Means (2025 FDD)
According to the 2025 FDD, Beverly Ann's Cookie franchisees are obligated to adhere to strict standards and specifications outlined in the Brand Manual, which includes the "Success Guide." These System Standards dictate various aspects of the business, including the types of supplies, equipment, furnishings, and signs, as well as the services, products, and supplies that the franchise must offer. Franchisees are prohibited from deviating from these standards without prior written consent from Beverly Ann's Cookie. These obligations directly relate to the restrictions on sources of products and services, as franchisees must purchase approximately 70% of initial setup items and 30% of ongoing operational items from Beverly Ann's Cookie or its approved suppliers.
Beverly Ann's Cookie maintains control over the quality and consistency of its brand by establishing and enforcing these System Standards. If a franchisee violates these standards, particularly concerning product quality or safety, Beverly Ann's Cookie reserves the right to demand immediate closure of the business until compliance is restored. To further protect its brand, Beverly Ann's Cookie may seek immediate injunctive relief to enforce closure if a franchisee fails to comply with the request.
Franchisees can request the approval of new suppliers by submitting samples and a written statement to Beverly Ann's Cookie. While Beverly Ann's Cookie aims to respond to such requests within 60 days, they generally respond within seven days. However, franchisees must receive written approval before using products from non-approved suppliers. Beverly Ann's Cookie retains the right to revoke approval at any time if a supplier no longer meets their standards, and franchisees must immediately cease using products from that supplier upon notification. This system ensures that franchisees' obligations to maintain quality align with the franchisor's restrictions on sourcing, thereby safeguarding the brand's reputation and customer experience.