What specific motor vehicle is described as collateral in the Beverly Anns Cookie agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Under the Franchise Agreement, Franchisee is required to maintain its Beverage Entertainment Vehicle ("GRM") to meet Franchisor's system standards which includes up to three periodic full upfits approximately every seven years before Franchisee is required to purchase a new GRM.
- C. Franchisee's GRM is at least 14 years old and, in lieu of a full upfit, Franchisee desires to have a "Skinny Upfit" done on its GRM subject to the terms and conditions of this Amendment.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, the agreement mentions a "Beverage Entertainment Vehicle" which is abbreviated as "GRM". The document states that the franchisee is required to maintain its GRM to meet Beverly Ann's Cookie system standards. These standards include up to three periodic full upfits approximately every seven years before the franchisee is required to purchase a new GRM.
The document also mentions a "Skinny Upfit" to be done on the GRM if the GRM is at least 14 years old, in lieu of a full upfit, subject to the terms and conditions of an amendment. This amendment is made and entered into as of the effective date listed in the signature block by and between Mobile Cookie Company, LLC, a Delaware limited liability company and the Franchisee identified on the signature block below.
For a prospective franchisee, this indicates that the Beverage Entertainment Vehicle (GRM) is a critical asset for operating a Beverly Ann's Cookie franchise. Franchisees should be aware of the maintenance requirements, including the potential for upfits every seven years or a "Skinny Upfit" for older vehicles. Understanding the costs associated with maintaining or replacing the GRM is essential for financial planning.