In the context of the Franchise Agreement for a Chocolate Bash, what is the role of CB Franchising?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
This Agreement is made between Chocolate Bash Franchising, LLC, a Wyoming limited liability company ("CB Franchising"), and Franchisee effective as of the date signed by CB Franchising (the "Effective Date").
Background Statement:
- A. CB Franchising have created and own a system (the "System") for developing and operating a shop offering sweet crepes, waffles, fruit salads and Belgian chocolate dipped fruits under the trade name "Chocolate Bash".
- B. The System includes (1) methods, procedures, and standards for developing and operating a Chocolate Bash business, (2) plans, specifications, equipment, signage and trade dress for Chocolate Bash businesses, (3) particular products and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by CB Franchising from time to time.
- C. The parties desire that CB Franchising license the Marks and the System to Franchisee for Franchisee to develop and operate a Chocolate Bash business on the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, CB Franchising, LLC, a Wyoming limited liability company, is the franchisor in the Chocolate Bash franchise system. CB Franchising owns the Chocolate Bash system, which includes methods, procedures, and standards for operating a Chocolate Bash business, as well as plans, specifications, equipment, signage, trade dress, products, services, the brand's trademarks, training programs, business knowledge, and marketing plans. CB Franchising licenses the Chocolate Bash marks and system to franchisees, allowing them to operate a Chocolate Bash business under the terms and conditions outlined in the Franchise Agreement.
CB Franchising grants the franchisee the right to operate a Chocolate Bash business solely at an agreed-upon location. CB Franchising also provides criteria for Chocolate Bash locations, reviews potential locations submitted by the franchisee, and offers pre-opening assistance, including standard building plans, specifications, system standards, and lists of approved vendors. They also make available pre-opening training to the Principal Executive and up to 2 other employees, and advise on the franchisee's market introduction plan. CB Franchising will have a representative support the franchisee's business opening with at least 3 days of onsite opening training and assistance.
CB Franchising retains certain rights, such as establishing and licensing Chocolate Bash businesses outside the franchisee's territory and operating or licensing other businesses that do not operate under the Chocolate Bash brand name. They can also sell and license others to sell products and services in the territory through other distribution channels. CB Franchising may delegate any duty or obligation under the Franchise Agreement to an affiliate or third party and may vary or waive any System Standard for any one or more Chocolate Bash franchises due to specific circumstances. CB Franchising also has the authority to order a temporary closure of the business if they discover any aspect that constitutes an imminent danger to health or safety.
CB Franchising may add, modify, or discontinue any Marks to be used under the System, and the franchisee must comply with these changes at their own expense. All goodwill associated with the Marks inures to the exclusive benefit of CB Franchising. CB Franchising may establish market advertising and promotional cooperative funds in any geographical areas, and franchisees may be required to participate. CB Franchising will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of CB Franchising's fiscal year and will provide the financial statement to Franchisee upon request.