factual

Can a Chocolate Bash franchisee make sales from locations other than their premises?

Chocolate_Bash Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 7.19 No Other Activity at the Location. Franchisee shall not engage in any activity at the Location other than operation of the Chocolate Bash Business.

ARTICLE 2. GRANT OF LICENSE

  • 2.1 Grant. CB Franchising grants to Franchisee the right to operate a Chocolate Bash business solely at the Location.

Franchisee shall develop, open and operate a Chocolate Bash business at the Location for the entire term of this Agreement.

You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.

There are no restrictions on you from soliciting or accepting orders from consumers outside of your territory, except that we reserve the right to control all internet-based marketing.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 30)

What This Means (2024 FDD)

According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are generally restricted to operating their business solely at their designated location. The franchise agreement grants the franchisee the right to operate a Chocolate Bash business specifically at the defined location. The franchisee is obligated to develop, open, and operate the Chocolate Bash business at this location for the entire term of the agreement.

Chocolate Bash franchisees do not have the right to relocate their business without approval from the franchisor, and the franchisor has no obligation to approve relocation requests. Relocation is considered on a case-by-case basis, taking into account factors like demographic changes, the profitability of the current business, or loss of premises due to circumstances beyond the franchisee's control. Furthermore, franchisees are prohibited from engaging in any activity at the Location other than operation of the Chocolate Bash Business.

However, there are no explicit restrictions preventing a Chocolate Bash franchisee from soliciting or accepting orders from consumers outside of their territory, provided that internet-based marketing is controlled by the franchisor. This implies that while the primary operation must be at the approved location, franchisees might have some leeway to generate sales outside their physical premises through channels other than the internet, subject to franchisor's approval.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.