factual

Does Chocolate Bash currently have any local or regional advertising cooperatives?

Chocolate_Bash Franchise · 2024 FDD

Answer from 2024 FDD Document

Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% of gross sales. If our own outlets are members of a cooperative, they must contribute to the cooperative on the same basis as franchisees, and they will vote on the same basis as other members. If our outlets have controlling voting power, there is no maximum on fees that could be imposed. We administer the cooperative, but we have the right to delegate responsibility for administration to an outside company such as an advertising agency or accounting firm, or to the franchisee members of the cooperative. We have the right to require the cooperative to operate from written bylaws or other governing documents that we determine. The documents are not

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–25)

What This Means (2024 FDD)

According to Chocolate Bash's 2024 Franchise Disclosure Document, the company does not currently have any local or regional advertising cooperatives. However, Chocolate Bash retains the right to mandate franchisee participation in such cooperatives in the future.

If Chocolate Bash establishes a cooperative, the area will be defined based on media markets or other geographic criteria deemed appropriate by the company. Each Chocolate Bash franchisee within the cooperative area would have one vote per outlet, unless they are in default of their franchise agreement. The contribution amount to the cooperative will be determined by the members' vote, but it will not be less than 1% of gross sales.

If Chocolate Bash's own outlets are part of the cooperative, they must contribute on the same basis as franchisees and will vote accordingly. However, if Chocolate Bash's outlets have controlling voting power, there is no limit to the fees that could be imposed on franchisees. Chocolate Bash will administer the cooperative but can delegate this responsibility to an outside company or the franchisee members. Chocolate Bash also has the power to require cooperatives to be formed, changed, dissolved, or merged.

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.