Does a Chocolate Bash franchisee need approval for remodel plans?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, CB Franchising may require Franchisee to undertake and complete a Remodel of the Location to CB Franchising's satisfaction.
Franchisee must complete the Remodel in the time frame specified by CB Franchising.
CB Franchising may require the Franchisee to submit plans for CB Franchising's reasonable approval prior to commencing a required Remodel.
CB Franchising's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, franchisees may be required to remodel their location to meet Chocolate Bash's standards. If a remodel is required, the franchisee may need to submit plans for Chocolate Bash's approval before starting the remodel. Chocolate Bash will provide a timeframe for completing the remodel.
However, there are limitations to how often Chocolate Bash can mandate a remodel. Chocolate Bash will not require a remodel during the first two or last two years of the franchise term, with the exception of a remodel required for renewal or transfer of the franchise. Additionally, Chocolate Bash will not require a remodel more than once every five years, calculated from the completion date of the previous remodel.
This means that while Chocolate Bash has the right to enforce remodels to maintain brand standards, franchisees have some protection against excessive or poorly timed remodel requirements. Franchisees should carefully review the franchise agreement and communicate with Chocolate Bash to understand the scope and frequency of potential remodel obligations.