What is Attachment 1 in the context of the Chocolate Bash franchise agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee.
If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify CB Franchising within 10 days.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, Attachment 1 to the franchise agreement requires the franchisee to identify each owner, officer, and director of the franchisee entity and describe the nature and extent of each owner's interest in the Chocolate Bash franchise.
This attachment serves to provide Chocolate Bash with transparency regarding the ownership and management structure of the franchisee. This allows Chocolate Bash to understand who is involved in the business and the extent of their stake in the franchise.
Furthermore, the franchise agreement stipulates that if any information on Attachment 1 changes, excluding a Transfer of ownership, the franchisee must notify Chocolate Bash within 10 days. This ensures that Chocolate Bash maintains current information about the franchisee's ownership and management.
In essence, Attachment 1 is a disclosure document that ensures Chocolate Bash knows who is operating and has a financial stake in each franchise location, and it requires franchisees to keep this information up to date.