Does Chocolate Bash currently charge an administrative fee for third-party vendors?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. | Varies | We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together a reasonable markup or charge for administering the payment program. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, while Chocolate Bash has the right to charge an administrative fee for payments made to third-party vendors, it is currently not doing so. The FDD specifies that franchisees may be required to use designated third-party vendors and suppliers for services like computer support, mystery shopping, and customer feedback systems. These vendors can bill franchisees directly, or Chocolate Bash can collect payments on their behalf.
If Chocolate Bash collects payments for third-party vendors, they have the right to add a reasonable markup or charge to cover the administrative costs of managing the payment program. However, the current amount listed in the table for third party vendors is 'Pass-through of costs, plus reasonable administrative charge. Currently, none.'
This means that, as of the FDD date, Chocolate Bash franchisees are not being charged an additional administrative fee on top of the costs passed through from third-party vendors. However, it is important to note that this policy could change in the future, as Chocolate Bash reserves the right to implement such a fee. Prospective franchisees should confirm the current policy with Chocolate Bash and factor in the potential for this additional cost when evaluating the franchise opportunity.