Does the fee deferral condition for Chocolate Bash apply to franchisees outside of California?

According to Chocolate Bash's 2024 Franchise Disclosure Document, the fee deferral condition applies specifically to California franchisees. The document states that the Commissioner has imposed a fee deferral condition because Chocolate Bash had not demonstrated adequate capitalization and/or was relying on franchise fees to fund operations. As a result, Chocolate Bash is required to defer the collection of all initial fees from California franchisees until all pre-opening obligations are completed and the franchisee is open for business.

For California franchisees who sign a development agreement with Chocolate Bash, the payment of development and initial fees attributable to a specific unit in their development schedule is deferred until that specific unit is open. This condition is explicitly tied to the requirements of the California Franchise Investment Law and is part of an addendum specific to the state of California.

This means that franchisees outside of California are not eligible for this fee deferral. They will likely be required to pay the initial franchise fees according to the standard payment schedule outlined in the Franchise Agreement, regardless of whether pre-opening obligations are complete or the business is open. Prospective franchisees outside of California should be prepared to meet the standard financial obligations and payment timelines as outlined in the FDD.