Must a Chocolate Bash franchisee pay all monetary obligations before a transfer can be approved?
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)
According to the 2024 Chocolate Bash Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must pay all amounts owed to CB Franchising based on the operation of the business through the effective date of termination or expiration. This requirement ensures that Chocolate Bash franchisees fulfill their financial obligations to the company before ceasing operations.
This obligation is part of a series of actions a franchisee must take upon termination or expiration of the agreement. These include returning all copies of the Manual, Confidential Information, and any other materials provided by Chocolate Bash, as well as deleting all Confidential Information and proprietary materials from electronic devices.
While the FDD specifies financial obligations upon termination, it does not explicitly state that all monetary obligations must be settled before a transfer of ownership can be approved. For specific details regarding financial obligations and transfer approval, a prospective franchisee should inquire directly with Chocolate Bash.