What document does CB Franchising issue when it accepts a location for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
lude Franchisee's location (or territory) and telephone number.
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.
- (iii) CB Franchising's advice regarding or acceptance of a site is not a representation or warranty that the Business will be successful, and CB Franchising has no liability to Franchisee with respect to the location of the Business.
- (iv) If Franchisee has not received a Location Acceptance Letter within 12 months of the Effective Date, CB Franchising shall have the right to terminate this Agreement
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by CB Franchising, Franchisee must submit the proposed lease to CB Franchising for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by CB Franchising.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 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 Territory is determined by Chocolate Bash in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document.
This Location Acceptance Letter is a critical document for prospective Chocolate Bash franchisees as it formally defines the physical location and the surrounding territory where they are authorized to operate. The letter confirms that the franchisor has approved the franchisee's chosen site and specifies the geographic boundaries within which the franchisee will have certain protections, as outlined in the franchise agreement.
The franchisee needs to find a potential location within the Development Area described on the Summary Page and submit its proposed Location to CB Franchising for acceptance, with all related information CB Franchising may request. If Chocolate Bash does not accept the proposed Location in writing within 30 days, then it is deemed rejected. This process ensures that the location meets Chocolate Bash's criteria and standards, which are designed to maximize the potential for success.
It is important for franchisees to carefully review the Location Acceptance Letter and understand the terms and conditions related to their location and territory. Any questions or concerns should be addressed with Chocolate Bash before proceeding with the franchise agreement. Attachment 2 provides a template of what the letter will contain.