Does the Chocolate Bash FDD include an exhibit containing the Multi-Unit Development Agreement?

According to the 2024 Chocolate Bash FDD, Exhibit C includes the Multi-Unit Development Agreement. This agreement is crucial for franchisees interested in opening multiple Chocolate Bash locations.

The Multi-Unit Development Agreement outlines the terms and conditions under which a franchisee can develop and operate more than one Chocolate Bash franchise. This includes the development schedule that the franchisee must adhere to. The franchisee is required to pay the total Initial Franchise Fee to CB Franchising upon execution of the MUDA, which is non-refundable.

The agreement specifies that for the first store, the Franchise Agreement is executed simultaneously with the MUDA. For each additional franchise, the franchisee must execute Chocolate Bash's current standard franchise agreement within three business days of securing a location. The MUDA itself does not grant the right to operate a Chocolate Bash business; a separate franchise agreement is required for each location.

Chocolate Bash may terminate the MUDA if the franchisee fails to meet the development schedule or if there is a default under any franchise agreement. However, the franchisee's liability is limited to the commitment to develop the businesses, and they are not liable for lost future revenues if the MUDA is terminated due to default. The franchisee can also terminate the MUDA at any time. The franchisee's right to develop further franchises after the first store is contingent on having sufficient financial and organizational capacity and being in full compliance with brand requirements.