Can CB Franchising require a Chocolate Bash franchisee to reimburse expenses for resolving customer complaints?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Advice, Consulting, and Support. If Franchisee requests, CB Franchising will provide advice to Franchisee (by telephone or electronic communication) regarding improving and developing Franchisee's business, and resolving operating problems Franchisee encounters, to the extent CB Franchising deems reasonable. If CB Franchising provides in-person support in response to Franchisee's request, CB Franchising may charge its then-current fee plus any out-ofpocket expenses (such as travel, lodging, and meals for employees providing onsite support).
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the circumstances under which Chocolate Bash can charge franchisees for expenses are limited to instances where the franchisor provides in-person support at the franchisee's request.
Specifically, if a Chocolate Bash franchisee requests in-person assistance from CB Franchising to help resolve operating problems, CB Franchising may charge the franchisee its then-current fee for the support provided, in addition to covering out-of-pocket expenses. These expenses include travel, lodging, and meals for the employees providing the on-site support.
However, the FDD does not explicitly state that Chocolate Bash franchisees are required to reimburse expenses specifically for resolving customer complaints. It only mentions the possibility of fees and expense reimbursement when the franchisor provides on-site support at the franchisee's request for general operating problems. Therefore, it is not clear whether the costs associated with resolving customer complaints can be passed on to the franchisee.