Is Beverly Anns Cookie required to notify the franchisee before assigning the Franchise Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Agreement is fully assignable by us (without prior notice to you) and shall inure to the benefit of any assignee(s) or other legal successor(s) to our interest in this Franchise Agreement; provided that we shall, subsequent to any such assignment, remain liable for the performance of our obligations under this Franchise Agreement up to the effective date of the assignment. We may also delegate some or all of our obligations under this Franchise Agreement to one or more designees without assigning this Franchise Agreement.
We may change our ownership or form and/or assign this Franchise Agreement and any other agreement to a third party without restriction. After our assignment of this Franchise Agreement to a third party who expressly assumes the obligations under this Franchise Agreement, we no longer will have any performance or other obligations under this Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie can assign the Franchise Agreement without providing prior notice to the franchisee. However, Beverly Anns Cookie will remain liable for their obligations under the Franchise Agreement up to the effective date of the assignment.
Beverly Anns Cookie also has the option to delegate some or all of its responsibilities under the Franchise Agreement to designees without needing to assign the agreement itself. After Beverly Anns Cookie assigns the Franchise Agreement to another party who then assumes the obligations outlined in the agreement, Beverly Anns Cookie will no longer be responsible for performance or other obligations under the Franchise Agreement.
This is a common practice in franchising, allowing the franchisor flexibility in its business operations. However, it's important for the franchisee to understand that the franchisor can transfer the agreement to another party without prior notification. While Beverly Anns Cookie remains liable for obligations up to the assignment date, the franchisee will need to be comfortable with the possibility of dealing with a new franchisor.