Under what circumstances might a Beverly Anns Cookie franchisee be required to reimburse the franchisor?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
If we determine, in our sole discretion, that you are not operating your Franchised Business in compliance with this Franchise Agreement and/or the Brand Manual, we may require that you, your employees and other designees attend remedial training relevant to your operational deficiencies. You must pay us the then-current training fee as specified in our Brand Manual.
You are solely responsible for all expenses and costs that your trainees incur for all trainings and conferences under this Section, including wages, travel, lodging, food and living expenses. You also agree to reimburse us for all expenses and costs we incur to travel to your Franchised Business under this Section, including travel, food, lodging and living expenses.
"Territory Infringement" occurs when a franchisee generates income from a customer by receiving payment for goods and/or services provided and/or rendered within the territory of another Beverly Ann's Cookie Truck franchisee without first obtaining that franchisee's and our written permission.
In addition, if you lose, give away, make unauthorized copies, fail to return or otherwise misappropriate, all or some of the Brand Manual, you will be required to pay us liquidated damages to offset the damages
we will incur as a result of this misappropriation. These liquidated damages are determined by taking our total revenue from our previous fiscal year, multiplied by the fraction which results from taking one divided by the current number of Beverly Ann's Cookie Truck franchisees as of the date of the misappropriation, except that this fee will not, under any circumstances, be less than $30,000.
You must pay us the then-current fee (currently $216 per year (or $18 per month)) for each email address you obtain, which is currently due at the same time as your Royalty. We reserve the right to increase this fee upon 30 days' written notice to you.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse the franchisor under several circumstances. If a franchisee, their employees, or designees are required to attend remedial training due to operational deficiencies, the franchisee must pay the then-current training fee as specified in the Brand Manual. Additionally, franchisees are responsible for all expenses their trainees incur for training and conferences, including wages, travel, lodging, food, and living expenses.
Furthermore, the franchisee agrees to reimburse Beverly Anns Cookie for all expenses and costs incurred to travel to the franchisee's business for training purposes, including travel, food, lodging, and living expenses. If a Beverly Anns Cookie franchisee generates income by providing goods or services within another franchisee's territory without written permission from both the franchisor and the other franchisee, this is considered "Territory Infringement".
Finally, if a franchisee loses, gives away, makes unauthorized copies, fails to return, or otherwise misappropriates the Brand Manual, they will be required to pay liquidated damages. These damages are calculated based on Beverly Ann's Cookie's total revenue from the previous fiscal year, multiplied by a fraction derived from one divided by the current number of franchisees, with a minimum fee of $30,000. The franchisee is also responsible for paying the then-current fee (currently $216 per year, or $18 per month) for each Beverly Anns Cookie email address obtained from the franchisor, and this fee may increase with 30 days' written notice.