Does a Chocolate Bash Franchisee need CB Franchising's consent to conduct a Transfer?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
"Transfer" means for Franchisee (or any Owner) to voluntarily or involuntarily transfer, sell, or dispose of, in any single or series of transactions, (i) substantially all of the assets of the Business, (ii) this Agreement, (iii) direct or indirect ownership interest of more than 25% of the Business, or (iv) control of the Business.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, a "Transfer" occurs when a franchisee (or any owner) voluntarily or involuntarily transfers, sells, or disposes of, in a single or series of transactions, substantially all of the business's assets, the Franchise Agreement itself, a direct or indirect ownership interest of more than 25% of the business, or control of the business.
Therefore, based on the definition provided in the FDD, if a Chocolate Bash franchisee plans to transfer, sell, or dispose of more than 25% of their ownership interest in the business, or control of the business, it would be considered a transfer.
The FDD excerpt does not explicitly state whether CB Franchising's consent is required for a transfer. To fully understand the requirements and procedures for transferring a Chocolate Bash franchise, including whether franchisor consent is needed, a prospective franchisee should review the full franchise agreement and discuss transfer conditions with the franchisor.