Does Beverly Anns Cookie have the right to withhold consent for a franchisee to operate a competing business?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, if at any time during the term of this Agreement, you, your owners or your affiliates wish to operate a Competitive Business or offer products or services that would be competitive with the Franchised Business, you may request that we consent to the opening of a competing business (hereafter referred to as a "Permitted Business") which consent we may withhold in our sole discretion. The operation of any approved Permitted Business shall be operated pursuant to and consistent with our standard Form of Permitted Business Addendum attached to our franchise disclosure document.
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 has the right to withhold consent if a franchisee wishes to operate a competing business during the term of the franchise agreement. Specifically, if a franchisee, its owners, or affiliates want to operate a business that competes with Beverly Anns Cookie, they must request permission. Beverly Anns Cookie may withhold this consent at its discretion. If Beverly Anns Cookie approves, the competing business must operate under the terms of a standard Permitted Business Addendum.
This policy means that as a franchisee, you are significantly restricted from engaging in any competitive business ventures during the term of your agreement. Even if you see an opportunity to leverage your experience and resources in a related business, you cannot proceed without Beverly Anns Cookie's explicit approval. This approval is not guaranteed and is entirely at Beverly Anns Cookie's discretion, potentially limiting your entrepreneurial freedom during the franchise term.
After the franchise agreement terminates, expires, or is transferred, franchisees are still restricted from operating a competitive business. This post-term restriction applies for two years within a 20-mile radius of the former franchise territory and within a 20-mile radius of all other Beverly Ann's Cookie Truck businesses operating at the time of termination, expiration, or transfer. This non-compete clause ensures that former franchisees cannot immediately leverage their knowledge and experience to directly compete with Beverly Anns Cookie in close proximity to existing locations.