What is the due date for the non-compliance fee charged by Chocolate Bash?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross sales | Monthly by the 5th day of the following month | See Note 1 and Note 2. |
| Marketing Fund Contribution | 1% of your gross sales | Monthly by the 5th day of the following month | |
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly by the 5th day of the following month | We have the right to establish local or regional advertising cooperatives. There is no maximum on the contribution determined by the co-op. |
| New Manager Training fee | Currently, $15,000 | Prior to attending training | If you send a manager or other employee to our training program after you open, we will charge our then-current training fee. |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. | Varies | We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together a reasonable markup or charge for administering the payment program. |
| Software subscription | Currently, $200 - $250 per month | Monthly | We require you to use certain software as described in Item 11. You pay subscription fees directly to the software supplier, and not to us. |
| Non-compliance fee | $500 | On demand | We may charge you $500 if your business is not in compliance with our system specifications or the franchise agreement and you fail to correct the non-compliance after 30 days' notice. Thereafter, we may charge you $250 per week until you correct such non |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the non-compliance fee is due 'on demand.' This means that Chocolate Bash can require immediate payment of the $500 fee if a franchisee's business is not following the system standards or the franchise agreement.
However, Chocolate Bash will only charge this fee if the franchisee fails to correct the issue after receiving 30 days' notice. If the non-compliance continues after the initial fee, Chocolate Bash may then charge an additional $250 per week until the franchisee fixes the problem.
This fee structure is designed to encourage franchisees to maintain Chocolate Bash's standards and address any issues promptly. It's important for prospective franchisees to understand these terms and ensure they have the resources to correct any non-compliance issues quickly to avoid incurring additional fees.