Is CB Franchising required to inspect a Chocolate Bash franchisee's construction or remodeling progress?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 the 2024 Chocolate Bash Franchise Disclosure Document, CB Franchising may require franchisees to submit plans for reasonable approval before starting any required remodeling. The franchisee must complete the remodel within the timeframe that Chocolate Bash specifies. CB Franchising's ability to mandate a remodel is limited; they cannot require one during the first two or last two years of the franchise term, unless it's a condition for renewal or transfer. Also, remodels cannot be required more often than once every five years from the completion date of the previous remodel.
While Chocolate Bash provides a sample set of standard building plans and specifications, along with applicable System Standards, the FDD does not explicitly state that CB Franchising will inspect the franchisee's construction or remodeling progress. However, franchisees must adhere to the System Standards, which include requirements for design, such as construction, decoration, layout, furniture, fixtures, and signs.
Given that franchisees must meet Chocolate Bash's System Standards for construction and remodeling, it is highly probable that Chocolate Bash will want to inspect the franchisee's progress to ensure compliance. A prospective franchisee should clarify with Chocolate Bash the extent to which they will monitor and inspect the construction and remodeling process to ensure compliance with their standards.