What is the 'Term' of the Additional Franchise Reservation Agreement for a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to purchase a Beverly Ann's Cookies franchise for the Reserved Territory during the term, you will not be able to enter into another agreement to reserve the Reserved Territory.
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- Deadline. You must sign a Franchise Agreement for your Reserved Business for the Reserved Territory no later than one year from the Effective Date ("Deadline").
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- Right of First Refusal. If you do not meet the Deadline for any reason, we will allow you a right of first refusal for the Reserved Territory ("ROFR") subject to the restrictions contained in this Section. This ROFR will shall expire on the earlier of the execution of a Franchise Agreement for the Reserved Business, or 12 months after the Deadline ("Expiration Date"). If, after the Deadline, a qualified prospective franchisee has applied to operate a Beverly Ann's Business in the Reserved Territory, then we
will provide to you (i) written notification stating the same and (ii) the then-current Franchise Disclosure Document and franchise agreement ("Franchisor's Notice"). You will have twenty days from the receipt of Franchisor's Notice to sign a Franchise Agreement for the Reserved Territory and pay the applicable fees.
You will forfeit your ROFR upon the occurrence of the earlier of the occurrence of any of the following: (1) you indicate in writing that you do not want to exercise this ROFR; and (2) you decline to exercise your rights under this Section within the twenty day period described above.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a prospective franchisee fails to purchase a Beverly Anns Cookie franchise for the Reserved Territory during the term of the Additional Franchise Reservation Agreement, they will not be able to enter into another agreement to reserve the Reserved Territory.
Specifically, the prospective franchisee must sign a Franchise Agreement for their Reserved Business for the Reserved Territory no later than one year from the Effective Date, which is referred to as the "Deadline". If the prospective franchisee does not meet the Deadline for any reason, Beverly Anns Cookie will allow them a right of first refusal for the Reserved Territory, subject to certain restrictions.
The right of first refusal will expire on the earlier of the execution of a Franchise Agreement for the Reserved Business, or 12 months after the Deadline, which is referred to as the "Expiration Date". If, after the Deadline, a qualified prospective franchisee has applied to operate a Beverly Anns Business in the Reserved Territory, then Beverly Anns Cookie will provide the original prospective franchisee with written notification and the then-current Franchise Disclosure Document and franchise agreement. The original prospective franchisee will have twenty days from the receipt of this notice to sign a Franchise Agreement for the Reserved Territory and pay the applicable fees.
The prospective franchisee will forfeit their right of first refusal upon the earlier of (1) indicating in writing that they do not want to exercise this right of first refusal, or (2) declining to exercise their rights within the twenty-day period described above.