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What constitutes 'ceasing operation' of the Chocolate Bash business?

Chocolate_Bash Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 11.10 Temporary Public Safety Closure. If CB Franchising discovers or becomes aware of any aspect of the Business which, in CB Franchising's opinion, constitutes an imminent danger to the

health or safety of any person, then immediately upon CB Franchising's order, Franchisee must temporarily cease operations of the Business and remedy the dangerous condition. CB Franchising shall have no liability to Franchisee or any other person for action or failure to act with respect to a dangerous condition.

  • 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:

  • (i) pay all amounts owed to CB Franchising based on the operation of the Business through the effective date of termination or expiration;

  • (ii) return to CB Franchising all copies of the Manual, Confidential Information and any and all other materials provided by CB Franchising to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;

  • (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to CB Franchising or any new franchisee as may be directed by CB Franchising, and Franchisee hereby irrevocably appoints CB Franchising, with full power of substitution, as its true and lawful attorney-infact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and

  • (iv) cease doing business under any of the Marks.

  • 14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Chocolate Bash business, to the reasonable satisfaction of CB Franchising.

Franchisee shall comply with any reasonable instructions and procedures of CB Franchising for de-identification.

If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, CB Franchising may enter the Location to remove the Marks and de-identify the Location.

In this event, CB Franchising will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by CB Franchising.

Source: Item 22 — CONTRACTS (FDD pages 38–39)

What This Means (2024 FDD)

According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees may be required to temporarily cease operations of their Business if CB Franchising discovers any aspect of the Business that, in their opinion, constitutes an imminent danger to the health or safety of any person. Upon CB Franchising's order, the franchisee must temporarily cease operations and remedy the dangerous condition. CB Franchising bears no liability to the franchisee or any other person for action or failure to act with respect to a dangerous condition.

Additionally, upon termination or expiration of the Franchise Agreement, the franchisee must immediately pay all outstanding amounts owed to CB Franchising based on the Business's operation through the termination date. They must also return all copies of the Manual, Confidential Information, and any other materials provided by CB Franchising, including items containing Marks, copyrights, and other proprietary items. The franchisee is also required to delete all Confidential Information and proprietary materials from electronic devices.

Within 30 days after termination or expiration, the franchisee is responsible for de-identifying the Location at their own expense, removing all Marks, signage, and trade dress of a Chocolate Bash business to CB Franchising's reasonable satisfaction. If the franchisee fails to do so within this period, CB Franchising may enter the Location to remove the Marks and de-identify the Location without being charged with trespass or being held accountable for any assets removed or damage caused.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.