Can CB Franchising delegate its duties under the agreement for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.8 Delegation. CB Franchising may delegate any duty or obligation of CB Franchising under this Agreement to an affiliate or to a third party.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, CB Franchising has the right to delegate its duties or obligations under the Franchise Agreement to either an affiliate or a third party. This means that Chocolate Bash can assign its responsibilities, such as providing support or enforcing standards, to another entity.
For a prospective franchisee, this clause indicates that the direct relationship they have with CB Franchising could change. While the franchisee initially signs an agreement with CB Franchising, the actual performance of certain duties might be handled by a different company. This could impact the quality and consistency of support, training, or other services provided.
It is important for a potential Chocolate Bash franchisee to understand who these affiliates or third parties might be and how this delegation could affect their business. Investigating the reputation and capabilities of any potential delegatees would be a prudent step before investing in the franchise. Franchisees should also consider how they would address any concerns if the delegated duties are not performed to their satisfaction.