How will Chocolate Bash determine the territory granted to a franchisee?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 50,000-100,000 Population Base. Although the areas will be defined by population base, there will be geographic, state or county lines that actually document the areas that will constitute territories. Other factors to determine the specific territory will include: average household income (or other wealth indicators), population density, existence of competition, capabilities of the buyer, etc. The territory area will be determined for each franchisee at the time of the signing of the franchise agreement and will most likely have the location as the epicenter of the territory boundaries.
Source: Item 12 — TERRITORY (FDD pages 25–26)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchise agreement will specify a territory determined by Chocolate Bash. This territory will typically include a population base of approximately 50,000 to 100,000 people. While the territory size is defined by population, Chocolate Bash will use geographic, state, or county lines to document the actual boundaries. The franchisee's location will most likely be the epicenter of the territory boundaries.
In determining the specific territory, Chocolate Bash will consider factors such as average household income (or other wealth indicators), population density, the existence of competition, and the capabilities of the buyer. The territory area will be determined for each franchisee when the franchise agreement is signed.
Chocolate Bash grants franchisees an exclusive territory, meaning they will not open a Chocolate Bash outlet nor license another party to do so within the franchisee's territory. The continuation of this territorial protection does not depend on achieving certain sales volumes, market penetration, or other performance-based contingencies. However, Chocolate Bash retains the right to use other channels of distribution, such as the internet, to make sales within the franchisee's territory, and the franchisee will not receive compensation for these sales.