Who bears the expense of complying with the Manual and System Standards for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.2 Change of Marks. CB Franchising may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after CB Franchising makes any such change, Franchisee must comply with the change, at Franchisee's expense.
12.3 Infringement.
Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Chocolate Bash business.
Franchisee shall comply with all procedures and specifications of CB Franchising related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
- 7.12 Maintenance and Repair. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair.
In addition, Franchisee shall promptly perform all work on the physical property of the Business as CB Franchising may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn out signage, floor coverings, furnishings, equipment and décor.
Franchisee acknowledges that the System Standards may include requirements for cleaning, maintenance, and repair.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchisee is generally responsible for the expenses associated with complying with the brand's Manual and System Standards. Specifically, the franchisee bears the cost when Chocolate Bash modifies or discontinues any Marks to be used under the System. The franchisee must comply with the change within a reasonable time, and all associated expenses are the franchisee's responsibility. This includes changes to trademarks, service marks, or logos. Franchisees must also keep the business in good repair and condition at their own cost.
This requirement extends to maintaining the physical property of the Chocolate Bash business, including periodic interior and exterior painting, resurfacing the parking lot, roof repairs, and replacing obsolete or worn-out signage, floor coverings, furnishings, equipment, and décor. The System Standards may include specific requirements for cleaning, maintenance, and repair, all of which are at the franchisee's expense. Additionally, Chocolate Bash may require the franchisee to undertake a remodel of the location to meet the franchisor's satisfaction, with the franchisee bearing the costs.
While Chocolate Bash provides initial standard building plans and specifications, along with the applicable System Standards, the franchisee is responsible for implementing and maintaining these standards at their own expense. This includes adhering to mandatory procedures, requirements, and standards for various aspects of the business, such as appearance, cleanliness, customer service, design, equipment, inventory, marketing, operating hours, presentation of Marks, product quality, reporting, safety, and technology. Therefore, a prospective Chocolate Bash franchisee should carefully consider these ongoing costs when evaluating the financial viability of the franchise.