What document does CB Franchising issue when it accepts the location for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the 2024 Chocolate Bash Franchise Disclosure Document, when CB Franchising accepts a proposed location for a franchise, it issues a Location Acceptance Letter. This letter, in the form of Attachment 2, officially states both the Location and the Territory granted to the franchisee.
The process begins with the franchisee identifying a potential location within their designated Development Area and submitting it to CB Franchising for approval, along with any related information requested by Chocolate Bash. CB Franchising then has 30 days to either accept or reject the proposed location in writing. Failure to provide written acceptance within this timeframe results in the location being deemed rejected.
The Location Acceptance Letter serves as a formal acknowledgment of the approved site and defines the franchisee's exclusive territory. Chocolate Bash determines the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. This letter is a critical document for the franchisee, as it confirms the approved location and outlines the geographical boundaries within which they are granted certain protections.