What is the deadline for executing the franchise agreement for each additional Chocolate Bash franchise after the first?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
For each additional Chocolate Bash franchise, Franchisee shall execute CB Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Chocolate Bash business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Chocolate Bash business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Chocolate Bash business.
Source: Item 23 — RECEIPTS (FDD pages 39–101)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if a franchisee is planning to open multiple Chocolate Bash locations, the deadline for executing the franchise agreement for each additional location is no later than three business days after the franchisee leases or acquires a location. This requirement is outlined within the context of a Multi-Unit Development Agreement (MUDA).
This means that a franchisee must act quickly to finalize the franchise agreement once they have secured a physical space for their new Chocolate Bash store. Failing to meet this deadline could potentially impact the franchisee's ability to proceed with opening the additional location.
It is important to note that the MUDA itself does not grant the franchisee the right to open or operate a Chocolate Bash business. Each location requires its own separate franchise agreement, executed according to the terms of the MUDA. This ensures that Chocolate Bash maintains control over the standards and operations of each individual franchise unit.