Can Beverly Anns Cookie unreasonably withhold approval of a proposed transfer?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever this Franchise Agreement requires our approval, you must make a timely written request for approval, and the approval must be in writing in order to bind us. Except as otherwise expressly provided in this Franchise Agreement, if we fail to approve any request for approval within the required period of time, we shall be deemed to have denied your request. If we deny approval and you seek legal redress for the denial, the only relief to which you may be entitled is to acquire our approval. Except where this Franchise Agreement states that we may not unreasonably withhold our approval or consent, we may withhold such approval or consent, in our sole discretion. You are not entitled to any other relief or damages for our denial of approval.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Beverly Anns Cookie has the right to withhold approval or consent for a transfer in its sole discretion, except where the Franchise Agreement explicitly states that they may not unreasonably withhold approval or consent. In cases where Beverly Anns Cookie's approval is required, the franchisee must submit a timely written request, and the approval must be in writing to be binding. If Beverly Anns Cookie fails to approve a request within the required time, the request is deemed denied.
If a franchisee seeks legal action due to a denial of approval, the only relief they may be entitled to is acquiring the approval itself. The franchise agreement specifies that franchisees are not entitled to any other relief or damages for Beverly Anns Cookie's denial of approval, reinforcing the franchisor's broad discretion in transfer approvals unless explicitly limited in the agreement.
This policy has significant implications for prospective franchisees. It highlights the importance of carefully reviewing the franchise agreement to understand the specific conditions under which Beverly Anns Cookie's approval is required and whether there are any limitations on their ability to withhold such approval. Franchisees should be aware that, in most cases, Beverly Anns Cookie retains significant control over transfer decisions and that legal recourse may be limited to obtaining the approval itself, without any additional compensation for damages incurred due to the denial.