Does a Chocolate Bash franchisee need to enter into subscription and support agreements for software?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- "System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by CB Franchising, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Chocolate Bash requires franchisees to adhere to certain technology standards as part of the overall System Standards. These standards encompass various technological components, including computers, software, and systems for point-of-sale, back-office operations, information management, security, communications, and payment acceptance. This suggests that franchisees will likely need to utilize specific software to meet these standards.
The FDD defines 'System Standards' as the mandatory procedures, requirements, and standards determined by CB Franchising for the System. These standards cover a wide array of operational aspects, including technology. The technology aspect specifically mentions computers, software, and various systems necessary for running the business.
While the FDD excerpt does not explicitly state that franchisees must enter into subscription and support agreements, the requirement to adhere to System Standards, which include specific software and technology, implies that franchisees may need to enter into agreements with approved or required vendors to obtain and maintain the necessary software and support. A prospective franchisee should clarify with Chocolate Bash the specific software required, the approved vendors, and the nature of any required subscription or support agreements during their due diligence.