What agreement is executed simultaneously with the MUDA for the first Chocolate Bash store?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
2. Form of Agreement. For Store #1, Franchisee and CB Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Chocolate Bash franchise, Franchisee shall execute CB Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Chocolate Bash business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Chocolate Bash business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Chocolate Bash business.
Source: Item 23 — RECEIPTS (FDD pages 39–101)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, when a franchisee signs a Multi-Unit Development Agreement (MUDA), they also execute a Franchise Agreement for their first Chocolate Bash store. This simultaneous execution is specifically for the initial store covered under the MUDA.
For each additional Chocolate Bash franchise beyond the first, the franchisee will enter into a separate franchise agreement. This subsequent agreement must be executed no later than three business days after the franchisee secures a location by either leasing or acquiring it. The MUDA itself does not grant the franchisee the right to immediately begin construction, opening, or operating any Chocolate Bash business.
Each Chocolate Bash location can only be established under a separate franchise agreement that is executed according to the terms outlined in the MUDA. This ensures that each location is individually franchised and compliant with Chocolate Bash's standards and requirements.