What is the sole responsibility for fulfillment of obligations written in the Beverly Anns Cookie Franchise Agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1.1 Authority. You have the authority to execute, deliver, and perform your obligations under this Franchise Agreement and all related agreements and are duly organized or formed, validly existing, and in good standing under the laws of the state of your incorporation or formation.
- 3.1.2 Company Documents. At our request, you will furnish copies of all documents and contracts governing the rights and obligations of your Owners (such as, Articles of Incorporation or Organization and partnership, operating or shareholder agreements or similar documents, the "Company Documents"). You will not alter, change, or amend your Company Documents, without obtaining our prior written approval, which approval we will not unreasonably deny or withhold, and will grant if such changes will not prevent you from performing your obligations under this Franchise Agreement.
- 3.1.3 Transfer Restrictions. Your Company Documents will recite that this Franchise Agreement restricts the issuance and transfer of any ownership interests in you, and all certificates and other documents representing ownership interests in you will bear a legend referring to this Franchise Agreement's restrictions.
- 3.1.6 Single Purpose Entity. The Franchised Business will be the only business that the Entity may operate, and your organizational documents must reflect this (although the Owners in the Entity
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the franchisee is responsible for executing, delivering, and performing their obligations under the Franchise Agreement. This encompasses all related agreements and ensures the franchisee is duly organized, validly existing, and in good standing under the laws of their state of incorporation or formation.
Beverly Anns Cookie requires that franchisees furnish copies of all documents and contracts governing the rights and obligations of their Owners, such as Articles of Incorporation or Organization, partnership agreements, or shareholder agreements. Franchisees cannot alter, change, or amend these Company Documents without prior written approval from Beverly Ann's Cookie, which will be granted if such changes do not prevent the franchisee from performing their obligations under the Franchise Agreement.
Furthermore, the franchisee's Company Documents must state that the Franchise Agreement restricts the issuance and transfer of any ownership interests in the franchisee. All certificates and other documents representing ownership interests must bear a legend referring to these restrictions in the Franchise Agreement. The franchised business must be the only business that the franchisee's entity operates, and the organizational documents must reflect this, although the Owners in the Entity may have other business interests subject to any restrictions on competitive businesses contained in the Franchise Agreement.