Under what conditions must a new owner of a Beverly Anns Cookie franchise execute documents?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
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; and (ii) the transferee does not need to pay a separate initial franchise fee.
You and each of your Owners sign a general release in the form we prescribe for all known and unknown claims against us, our affiliates and subsidiaries, and our and their respective members, officers, directors, agents and employees, arising before or contemporaneously with the Transfer.
If the proposed transferee has any previous relationship with us or our affiliates, then the proposed transferee must also execute a general release.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, a transferee (new owner) must adhere to specific requirements regarding documentation when a franchise is transferred. The transferee must receive the current Franchise Disclosure Document. The transferee and their owners are required to sign the current form of the franchise agreement and any related documents, such as the Franchise Owner Agreement or other guaranty, unless Beverly Anns Cookie instructs the assignation of the current agreement. The term of the agreement will be what is remaining on the current agreement and the transferee does not have to pay an initial franchise fee.
In addition to the franchise agreement, both the seller (current franchisee) and their owners must sign a general release. This release covers all known and unknown claims against Beverly Anns Cookie, its affiliates, subsidiaries, members, officers, directors, agents, and employees that may have arisen before or during the transfer. If the proposed transferee has had any prior dealings with Beverly Anns Cookie or its affiliates, they too must execute a general release.
These requirements ensure that the new franchisee is fully aware of their obligations and responsibilities, and that Beverly Anns Cookie is protected from potential liabilities associated with the transfer. The releases are standard practice in franchising to prevent future legal disputes related to past operations or relationships.