What representation does a Beverly Anns Cookie franchisee make about the operating condition of the Assets being transferred to Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee**") (each, a "Party" and together, the "Parties").
BACKGROUND
- A. Franchisor and Franchisee are parties to a Franchise Agreement ("Franchise Agreement") [dated/dated as of] 7/17/2025as a result of an approved transfer of a franchised business of Franchisor ("Franchised Business").
- B. Franchisor and Franchisee desire to amend the Franchise Agreement to reflect Franchisee's status as a transferee franchisee for the Franchised Business.
- C. All capitalized terms not otherwise defined in this Transfer Addendum shall have the meanings set forth in the Franchise Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties and subject to the following terms and conditions, it is agreed as follows:
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- Franchisor and Franchisee agree that because the Franchised Business is already open and operating and being acquired via a transfer, Franchisee and Franchisor shall be relieved of performing certain pre-opening and development obligations set forth in the Franchise Agreement. Specifically:
- a. Franchisee has already acquired the truck and, if applicable, additional equipment ("Assets") under Section 13.13 of the Franchise Agreement upon transfer of the Franchised Business. Section 13.13 of the Franchise Agreement is hereby amended accordingly. If any equipment is required for the Assets as set forth in Section 13.13 of the Franchise Agreement, Franchisee agrees to purchase such items from Franchisor prior to operating the Assets.
- b. Because Franchisee is a transferee franchisee, Franchisee shall not be required to pay the Initial Franchise Fee.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Franchise Agreement Transfer Addendum outlines the terms for transferring a Beverly Ann's Cookies franchise. In the event of a transfer, the new franchisee (transferee) acknowledges that they are acquiring a business that is already operational. As such, the new franchisee is responsible for ensuring the truck and any additional equipment (Assets) meet the standards outlined in Section 13.13 of the Franchise Agreement.
According to the Transfer Addendum, the franchisee has already acquired the Assets under Section 13.13 of the Franchise Agreement upon transfer of the Franchised Business. If any equipment is required for the Assets as set forth in Section 13.13 of the Franchise Agreement, Franchisee agrees to purchase such items from Franchisor prior to operating the Assets. This means the franchisee is expected to bring the Assets up to standard by purchasing any necessary equipment from Beverly Ann's Cookies before commencing operations.
Furthermore, the addendum states that the new franchisee is not required to pay the initial franchise fee, and if the franchisee is an existing franchisee under the Beverly Ann's Cookies System, the franchisee is not required to attend Initial Training. However, if the franchisee is not an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall complete the initial training program contained in Item 11 and Franchise Agreement Section 8 prior to beginning operation of the Beverly Ann's Cookies franchise. This ensures that the new franchisee is adequately trained to operate the business according to Beverly Ann's Cookies standards.