Under what circumstance related to opening a Beverly Anns Cookie franchise can the agreement be terminated?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our sole discretion, terminate this Franchise Agreement immediately upon written notice to you, without opportunity to cure, upon the occurrence of any of the following events, each of which constitute material events of default under this Franchise Agreement.
- 24.2.1 Failure to Open. If you fail to open your Franchised Business within three months of the Effective Date.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, Beverly Anns Cookie has the option to terminate the franchise agreement, without allowing an opportunity to cure the issue, if the franchisee fails to open their franchised business within three months of the effective date of the agreement. This is considered a material default of the agreement.
This provision is fairly standard in franchising, as the franchisor wants to ensure that franchisees are actively working to establish their business and generate revenue. The "effective date" is typically the date the franchise agreement is signed. The three-month window gives the franchisee time to secure a location, obtain necessary permits and licenses, complete training, and prepare for opening.
If a prospective Beverly Anns Cookie franchisee anticipates any potential delays in opening their business within this timeframe, they should discuss these concerns with the franchisor beforehand. It may be possible to negotiate an extension or other arrangement, but it's important to have this discussion upfront to avoid the risk of termination.