What is the dependency between finding a location and the Development Area for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
6.1 Determining Location and Territory. If the Location and Territory are not stated on the Summary Page:
(i) Franchisee shall find a potential Location within the Development Area described on the Summary Page Franchisee shall submit its proposed Location to CB Franchising for acceptance, with all related information CB Franchising may request.
If CB Franchising does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When CB Franchising accepts the Location, it shall issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory.
CB Franchising shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if the location is not already specified in the Summary Page of the Franchise Agreement, the franchisee is responsible for finding a potential location within the Development Area that is described on the Summary Page. The franchisee must then submit this proposed location to Chocolate Bash for their acceptance, including any related information that Chocolate Bash may request.
Chocolate Bash has 30 days to either accept or reject the proposed location in writing. If Chocolate Bash fails to respond within 30 days, the location is automatically considered rejected. If Chocolate Bash accepts the location, they will issue a Location Acceptance Letter, which will state both the location and the territory granted to the franchisee.
This process highlights the importance of the Development Area, as the franchisee's search for a suitable location is restricted to this area. The final territory is determined by Chocolate Bash in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document.