Can a Chocolate Bash franchisee offset or deduct any amounts from payments owed to CB Franchising?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
(i) pay all amounts owed to CB Franchising based on the operation of the Business through the effective date of termination or expiration;
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, the Franchise Agreement outlines the franchisee's payment obligations upon termination or expiration, requiring immediate payment of all outstanding amounts to CB Franchising. The agreement does not explicitly address whether a Chocolate Bash franchisee can offset or deduct any amounts from payments owed to CB Franchising.
However, the Franchise Agreement details the financial obligations of the franchisee upon termination, including the payment of all amounts owed to CB Franchising. This suggests that any disputes regarding offsets or deductions would need to be resolved separately and would not justify withholding payments.
Since the FDD does not provide specific details on offsetting payments, it is important for a prospective Chocolate Bash franchisee to seek clarification from the franchisor regarding the possibility of offsets or deductions. Understanding the franchisor's policy on this matter is crucial for managing financial obligations and potential disputes during the franchise term.