Under what circumstances is a Beverly Anns Cookie franchisee relieved of pre-opening and development obligations?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties and subject to the following terms and conditions, it is agreed as follows:
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- Franchisor and Franchisee agree that because the Franchised Business is already open and operating and being acquired via a transfer, Franchisee and Franchisor shall be relieved of performing certain pre-opening and development obligations set forth in the Franchise Agreement. Specifically:
- a. Franchisee has already acquired the truck and, if applicable, additional equipment ("Assets") under Section 13.13 of the Franchise Agreement upon transfer of the Franchised Business. Section 13.13 of the Franchise Agreement is hereby amended accordingly. If any equipment is required for the Assets as set forth in Section 13.13 of the Franchise Agreement, Franchisee agrees to purchase such items from Franchisor prior to operating the Assets.
- b. Because Franchisee is a transferee franchisee, Franchisee shall not be required to pay the Initial Franchise Fee. Section 6.6 of the Franchise Agreement is hereby amended accordingly.
- c. If Franchisee is an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall not be required to attend Initial Training and there shall be no Initial Training Deadline. Accordingly, Franchisor is under no obligation to provide Initial Training to Franchisee. If Franchisee is not an existing franchisee under the Beverly Ann's Cookies System, Franchisee shall complete the initial training program contained in Item 11 and Franchise Agreement Section 8 prior to beginning operation of the Beverly Ann's Cookies franchise. Notwithstanding the foregoing, any successor
Designated Manager must attend Initial Training and additional persons may attend the Initial Training in accordance with the terms of the Franchise Agreement; such Designated Managers and/or additional persons shall be required to pay for hotel and transportation costs associated with attending Initial Training. Section 8 of the Franchise Agreement is hereby amended accordingly.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, a franchisee is relieved of certain pre-opening and development obligations if the franchised business is already open, operating, and being acquired via a transfer. This means that instead of starting a new location from scratch, the franchisee is taking over an existing business.
Specifically, the franchisee is not required to pay the initial franchise fee, as Section 6.6 of the Franchise Agreement is amended accordingly. Additionally, if the franchisee is already part of the Beverly Ann's Cookies system, they do not have to attend initial training, and there is no initial training deadline. However, if the franchisee is new to the Beverly Ann's Cookies system, they must complete the initial training program outlined in Item 11 and Section 8 of the Franchise Agreement before starting operations. Any successor Designated Manager must attend Initial Training and additional persons may attend the Initial Training, but they are responsible for their own hotel and transportation costs.
Furthermore, the franchisee has already acquired the necessary truck and equipment under Section 13.13 of the Franchise Agreement upon the transfer of the franchised business. If any additional equipment is needed, the franchisee must purchase it from Beverly Ann's Cookie before operating the assets. This arrangement streamlines the process for acquiring an existing Beverly Ann's Cookie franchise, reducing the initial costs and training requirements for the incoming franchisee, provided they are already familiar with the Beverly Ann's Cookie system.