What is a Chocolate Bash franchisee obligated to disclose to CB Franchising regarding business improvements?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
In addition, Franchisee shall promptly perform all work on the physical property of the Business as CB Franchising may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn out signage, floor coverings, furnishings, equipment and décor.
Franchisee acknowledges that the System Standards may include requirements for cleaning, maintenance, and repair.
- 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 undertake a remodel of their location to meet Chocolate Bash's standards. If Chocolate Bash requires a remodel, the franchisee may need to submit plans for approval before starting the remodel.
The timing of required remodels is limited. Chocolate Bash will not require a remodel during the first two or last two years of the franchise term, with the exception of remodels required for renewal or transfer. Additionally, remodels will not be required more frequently than once every five years from the completion date of the previous remodel.
In addition to remodels, Chocolate Bash franchisees are obligated to maintain and repair their business locations. This includes keeping the premises neat and clean, performing necessary maintenance, and ensuring all physical property is in good repair. Franchisees must also promptly address any physical property work prescribed by Chocolate Bash, such as painting, parking lot resurfacing, roof repairs, and replacing worn-out signage, floor coverings, furnishings, equipment, and décor. These maintenance and repair obligations are part of the System Standards that franchisees must adhere to.