When constructing or remodeling a Chocolate Bash location, what specific approval must the franchisee obtain from CB Franchising before starting work?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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, if CB Franchising requires a remodel, the franchisee may need to submit plans for the franchisor's approval before starting the remodel. This approval is described as "reasonable." The FDD outlines specific limitations on when Chocolate Bash can mandate a remodel.
Specifically, Chocolate Bash will not require a remodel during the first two or the last two years of the franchise term. An exception exists if a remodel is required as a condition for renewing the term or transferring the franchise. Furthermore, Chocolate Bash will not require a remodel more than once every five years, calculated from the completion date of the previous remodel.
This means that as a Chocolate Bash franchisee, you may need to get plan approval from the franchisor before remodeling your location, and remodels can be required, but not too frequently or at the very beginning or end of your franchise term, unless it's tied to a renewal or transfer. This gives franchisees some predictability regarding remodel requirements and associated costs.