Can Beverly Anns Cookie withhold consent for a franchisee to offer securities?
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)
Based on the 2025 Franchise Disclosure Document, Beverly Anns Cookie has broad discretion regarding approvals. Specifically, unless the Franchise Agreement states that Beverly Anns Cookie may not unreasonably withhold approval or consent, Beverly Anns Cookie may withhold such approval or consent in its sole discretion.
This means that if a franchisee seeks approval for something, such as offering securities related to their franchise, Beverly Anns Cookie can deny the request unless the franchise agreement explicitly states they cannot unreasonably withhold consent for that specific type of request. The franchisee is not entitled to any relief or damages if Beverly Anns Cookie denies approval.
This clause gives Beverly Anns Cookie significant control over various aspects of the franchise operation, as the franchisee needs written approval for many actions. A prospective franchisee should carefully review the Franchise Agreement to identify which specific actions require Beverly Anns Cookie's approval and whether Beverly Anns Cookie is obligated to grant approval reasonably.