Can CB Franchising charge a fee for training programs required for Chocolate Bash franchisees?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
4.2 Training Fee. Upon signing this Agreement, Franchisee shall pay a training fee of $15,000 to CB Franchising. This fee is not refundable.
By order of the California Department of Business Oversight, all initial fees payable to the Franchisor are deferred until Franchisor has delivered all pre-opening obligations and Franchisee is open for business.
- 4.6 Replacement / Additional Training Fee. If Franchisee sends an employee to CB Franchising's training program after opening, CB Franchising may charge its then-current training fee.
As of the date of this Agreement, the training fee is $150 per person.
5.4 Pre-Opening Assistance.
- (c) Pre-Opening Training. CB Franchising shall make available its standard preopening training to the Principal Executive and up to 2 other employees, at CB Franchising's headquarters and/or at a Chocolate Bash business designated by CB Franchising. CB Franchising shall not charge any fee for this training. Franchisee is responsible for its own travel, lodging, meal, and other out-of-pocket expenses. CB Franchising reserves the right to vary the length and content of the initial training program based on the experience and skill level of any individual attending the program.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees must pay a $15,000 training fee upon signing the agreement. This fee is non-refundable. However, this initial fee is deferred until Chocolate Bash has fulfilled all pre-opening obligations and the franchisee is open for business.
After the Chocolate Bash business opens, if a franchisee sends an employee to a training program, Chocolate Bash may charge its then-current training fee. As of the date of the Franchise Agreement, this fee is $150 per person.
Chocolate Bash also provides standard pre-opening training to the Principal Executive and up to 2 other employees at its headquarters or a designated Chocolate Bash business without charging a fee for the training itself. However, the franchisee is responsible for covering their own travel, lodging, meal, and other out-of-pocket expenses associated with this training. Chocolate Bash retains the right to modify the length and content of the initial training program based on the attendee's experience and skill level.