What business practices are Chocolate Bash franchisees expected to follow?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.16 Suppliers and Landlord. Franchisee shall pay all vendors and suppliers in a timely manner.
If Franchisee leases the Location, Franchisee shall comply with its lease for the Location.
7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Chocolate Bash, the Business, or any particular incident or occurrence related to the Business, without CB Franchising's prior written approval, which will not be unreasonably withheld.
7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization, or (ii) act in support of any such organization, without CB Franchising's prior written approval, which will not be unreasonably withheld.
7.19 No Other Activity at the Location. Franchisee shall not engage in any activity at the Location other than operation of the Chocolate Bash Business.
7.20 No Other Businesses. If Franchisee is an entity, Franchisee shall not own or operate any other business except Chocolate Bash businesses.
7.21 No Third-Party Management. Franchisee shall not engage a third-party management company to manage or operate the Business without the prior written approval of CB Franchising, which will not be unreasonably withheld.
7.22 No Co-Branding. Franchisee shall not "co-brand" or associate any other business activity with the Chocolate Bash Business in a manner which is likely to cause the public to perceive it to be related to the Chocolate Bash Business.
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.
- 7.14 Meetings. The Principal Executive shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone conference calls) that CB Franchising requires, including any national or regional brand conventions.
Franchisee shall not permit the Principal Executive to fail to attend more than three consecutive required meetings.
- "System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by CB Franchising, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees must adhere to specific business practices outlined in the franchise agreement. Franchisees are required to pay vendors and suppliers in a timely manner and comply with their location lease terms. They cannot make public statements about Chocolate Bash without prior written approval from CB Franchising.
Franchisees are restricted from engaging in activities not directly related to the Chocolate Bash business at their location and, if the franchisee is an entity, they cannot own or operate other businesses besides Chocolate Bash franchises. They also cannot engage a third-party management company without approval from CB Franchising, nor can they co-brand or associate other business activities with the Chocolate Bash business.
Chocolate Bash franchisees must maintain their business in a neat and clean condition, perform necessary maintenance, and keep the physical property in good repair. This includes performing work prescribed by CB Franchising, such as painting, resurfacing parking lots, and replacing worn-out items. Franchisees must also honor all valid gift cards and pre-paid systems, regardless of who issued them, and comply with CB Franchising's procedures related to these systems and customer loyalty programs.
The Principal Executive of the franchise is expected to attend all required in-person and remote meetings, including national or regional brand conventions, and cannot miss more than three consecutive required meetings. Franchisees must also adhere to the System Standards, which include procedures and standards for various aspects of the business, such as appearance, cleanliness, customer service, design, equipment, inventory, marketing, operating hours, product quality, reporting, safety, and technology.