Can CB Franchising prescribe work on the physical property of a Chocolate Bash business?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, CB Franchising may require Franchisee to undertake and complete a Remodel of the Location to CB Franchising's satisfaction.
Franchisee must complete the Remodel in the time frame specified by CB Franchising.
CB Franchising may require the Franchisee to submit plans for CB Franchising's reasonable approval prior to commencing a required Remodel.
CB Franchising's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are required to maintain their business location in good condition and perform necessary maintenance. CB Franchising has the authority to prescribe work on the physical property of the Chocolate Bash business. This includes, but is 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.
In addition to general maintenance, Chocolate Bash franchisees may be required to undertake and complete a remodel of their location to CB Franchising's satisfaction. These remodels must be completed within the timeframe specified by CB Franchising, and the franchisor may require franchisees to submit plans for approval before starting any remodel work. However, CB Franchising limits remodels to no more than once every five years, excluding the first two and last two years of the franchise term, unless it is a condition for renewal or transfer.
These requirements ensure that all Chocolate Bash locations maintain a consistent brand image and meet the franchisor's standards. For a prospective franchisee, this means being prepared to invest in ongoing maintenance and potential remodels to keep the business up to date. It is important to factor in these potential costs when evaluating the financial feasibility of a Chocolate Bash franchise. Franchisees should communicate proactively with CB Franchising to understand the scope and timing of any required work to minimize disruptions and manage expenses effectively.