What action should a prospective Chocolate Bash franchisee take after receiving the FDD?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered, or exempt from registration, as of the Effective Date stated below:
| State | Effective Date |
|---|---|
| California | Pending |
STATE EFFECTIVE DATES
RECEIPT
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
If Chocolate Bash Franchising, LLC offers you a franchise, it must provide this disclosure document to you 14 calendar-days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. New York requires that you be given this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of any franchise or other agreement, or payment of any consideration that relates to the franchise relationship.
If Chocolate Bash Franchising, LLC does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and any applicable state agency (which are listed in Exhibit A).
Source: Item 23 — RECEIPTS (FDD pages 39–101)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a prospective franchisee should carefully read the disclosure document and all agreements. Chocolate Bash must provide the disclosure document to the prospective franchisee 14 calendar days before they sign a binding agreement or make a payment to Chocolate Bash or its affiliates related to the franchise sale. New York law requires Chocolate Bash to provide the disclosure document at the earlier of the first personal meeting or 10 business days before the execution of any franchise or other agreement, or payment of any consideration that relates to the franchise relationship.
If Chocolate Bash does not deliver the disclosure document on time, or if it contains a false or misleading statement, or a material omission, a violation of federal and state law may have occurred. In this case, the prospective franchisee should report this to the Federal Trade Commission in Washington, D.C., and any applicable state agency listed in Exhibit A of the FDD.
The FDD also includes a receipt page that the prospective franchisee must return to Chocolate Bash, acknowledging they received the disclosure document and its exhibits. These exhibits include State Administrators and Agents for Service of Process, the Franchise Agreement (with Guaranty and Non-Compete Agreement), the Multi-Unit Development Agreement, Financial Statements, and State Addenda to Disclosure Document. This receipt confirms that Chocolate Bash has provided the necessary information within the legally required timeframe, allowing the franchisee adequate time to review the opportunity before making a commitment.