What right does Beverly Anns Cookie reserve regarding customer complaints about a franchisee's business?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We may contact customers of your Franchised Business and offer such customers continued rights to use one or more Beverly Ann's Cookie Truck franchises on such terms and conditions we deem appropriate,
which in no event will include assumption of any then-existing liability arising or relating to those customers or act or failure to act by you or your Franchised Business.
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 retains the right to contact customers of a franchisee's business and offer them continued franchise rights. However, this right does not include the assumption of any existing liabilities related to those customers or any actions or failures to act by the franchisee.
This means that Beverly Anns Cookie can directly engage with a franchisee's customer base and offer them the opportunity to become franchisees themselves. This could occur for various reasons, such as the franchisee's poor performance or the franchisor's strategic goals.
However, Beverly Anns Cookie will not take on any existing legal or financial responsibilities that the franchisee has with those customers. This protects Beverly Anns Cookie from liabilities arising from the franchisee's operations. For a prospective franchisee, this highlights the importance of maintaining good customer relations and operating the franchise responsibly, as Beverly Anns Cookie could potentially approach their customers directly.