What is the definition of 'Territory' in the Chocolate Bash franchise agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
"Territory" means the territory stated on the Summary Page. If no territory is stated on the Summary Page, then the Territory is determined in accordance with Section 6.1.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the 'Territory' is defined as the territory stated on the Summary Page of the franchise agreement. However, if no territory is specified on the Summary Page, the territory will be determined in accordance with Section 6.1 of the agreement.
This means that a prospective Chocolate Bash franchisee needs to carefully review the Summary Page of their franchise agreement to understand the geographic area they will be granted to operate their franchise. If the territory is not clearly defined there, they should refer to Section 6.1, which likely outlines the process for determining the territory.
It is important for a potential franchisee to understand the size and scope of their territory, as Chocolate Bash will not establish nor license another Chocolate Bash business within the Territory. However, Chocolate Bash retains the right to establish and license others to establish and operate Chocolate Bash businesses outside the Territory, operate and license others to operate businesses anywhere that do not operate under the Chocolate Bash brand name, and sell and license others to sell products and services in the Territory through channels of distribution (including the internet) other than Chocolate Bash outlets. This could impact the franchisee's potential customer base and revenue.