Does Beverly Anns Cookie reserve the right to condition approval of a transfer of additional equipment?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not transfer any Additional Equipment without our prior written consent. We may approve or reject your request to transfer Additional Equipment in our sole discretion. In addition, we reserve the right
to condition our approval of a transfer on: (i) you being in good standing under this Franchise Agreement at the time of transfer, (ii) you paying off any loans or debts related to the Additional Equipment; (iii) Additional Equipment being modified in such a way to protect the System and/or any proprietary interests or trade secrets we have in the Additional Equipment; (iv) that the purchaser of the Additional Equipment be an existing Beverly Ann's Cookie Truck franchisee; and/or (v) such additional conditions that we deem reasonable in the circumstances. If we approve of your request to transfer any Additional Equipment, then in addition to any conditions to transfer that we impose, you agree to pay us a transfer fee of $1,000 per piece of Additional Equipment that you transfer. You will be required to enter into an amendment to this Franchise Agreement governing the terms of the Additional Equipment that you purchase.
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 does reserve the right to condition its approval of a transfer of additional equipment. Beverly Anns Cookie may require that the franchisee be in good standing, pay off any related loans or debts, modify the equipment to protect the System or trade secrets, and ensure the purchaser is an existing Beverly Anns Cookie franchisee. They may also add any other conditions they deem reasonable.
If a franchisee wishes to transfer additional equipment, they must first obtain written consent from Beverly Anns Cookie. If Beverly Anns Cookie approves the transfer, the franchisee must pay a transfer fee of $1,000 per piece of additional equipment. Additionally, the franchisee will be required to enter into an amendment to the Franchise Agreement governing the terms of the additional equipment.
This level of control allows Beverly Anns Cookie to maintain standards and protect its brand. For a prospective franchisee, this means that transferring additional equipment is not guaranteed and is subject to Beverly Anns Cookie's approval and conditions. It also involves a transfer fee, which should be factored into any decision to acquire and potentially transfer additional equipment.