Is the $5,000 site selection fee for Chocolate Bash refundable?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
chisor are deferred until Franchisor has delivered all pre-opening obligations and Franchisee is open for business.
4.3 Site Selection Fee. Upon signing this Agreement, Franchisee shall pay a site selection fee of $5,000 to CB Franchising. This fee is not refundable.
By order of the California Department of Business Oversight, all initial fees payable to the F
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the site selection fee is not refundable. Upon signing the Franchise Agreement, the franchisee must pay Chocolate Bash a $5,000 site selection fee. However, for California franchisees, the payment of this fee is deferred until Chocolate Bash has completed all pre-opening obligations and the franchisee is open for business.
Site selection fees are common in the franchise industry, as the franchisor typically provides assistance in identifying and approving a suitable location for the franchise. The non-refundable nature of this fee means that even if the franchisee does not proceed with opening a Chocolate Bash location, the $5,000 will not be returned.
Prospective franchisees should carefully consider the implications of a non-refundable site selection fee. It is important to conduct thorough due diligence on potential locations before signing the Franchise Agreement and paying the fee. Franchisees should also understand the site selection criteria used by Chocolate Bash and the level of support provided during the site selection process.