How does the term of the franchise agreement change upon transfer of a Beverly Anns Cookie franchise?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ised Business.
- 16.4.3 Monetary Obligations. All of your monetary obligations to us and our affiliates have been paid in full and you and the Owners are in full compliance with the terms of this Franchise Agreement and all other agreements with us or our affiliate(s).
- 16.3.5 Compliance with Franchise Agreement. You have not violated any provision of this Franchise Agreement or any other agreement with us during both the 60-day period before you requested our consent to the transfer and the period between your request and the effective date of the transfer.
- 16.3.6 Training. The transferee has (or if the transferee is an Entity, its approved Managing Owner and any Franchise Manager have) successfully completed, or made arrangements to attend, the initial training program (and the transferee has paid us the training fee for each new person who must attend training).
- 16.3.7 Licenses and Permits. The transferee and its owners, to the extent necessary, have obtained all licenses and permits required by applicable law to own and operate the Franchised Business.
- 16.3.8 New Franchise Agreement. You must request that the transferee be provided with our then-current form of franchise disclosure document. You agree that we will not be liable for any representations that you or your Owners make that are inconsistent with such franchise disclosure document. The transferee and its owners sign our then-current form of franchise agreement and related
documents, including, but not limited to, our then-current form of Franchise Owner Agreement or other guaranty (unless we, in our sole discretion, instruct you to assign this Franchise Agreement to the transferee), except that: (i) the Term and successor term(s) shall be the Term and successor term(s) remaining under this Franchise Agreement;
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, when a franchise is transferred, the transferee (buyer) typically signs the then-current form of the franchise agreement. However, there are exceptions regarding the term and fees. The term of the franchise agreement remains the same as what was left under the original agreement. This means the new franchisee takes over the remaining term and any successor terms that were part of the initial agreement.
This is a notable benefit for the transferee because they do not have to pay a separate initial franchise fee, which can be a substantial cost. Instead, the transferee benefits from the existing term of the franchise without incurring this upfront fee. The transfer process also involves the original franchisee requesting that Beverly Anns Cookie provide the transferee with the most current franchise disclosure document to ensure transparency and compliance.
However, the transfer is not without its costs. The original franchisee must pay a transfer fee, which is either $7,500 if the transferee is an existing Beverly Anns Cookie Truck franchisee or $10,000 if the transferee is new to the system, plus $1,000 for each piece of Additional Equipment transferred. Furthermore, if Beverly Anns Cookie referred the transferee, the original franchisee must pay an additional $15,000. The original franchisee must also sign a general release of claims against Beverly Anns Cookie.