Can a Chocolate Bash franchisee request approval for a new good or service to sell?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
7.19 No Other Activity at the Location. Franchisee shall not engage in any activity at the Location other than operation of the Chocolate Bash Business.
7.20 No Other Businesses. If Franchisee is an entity, Franchisee shall not own or operate any other business except Chocolate Bash businesses.
7.22 No Co-Branding. Franchisee shall not “co-brand” or associate any other business activity with the Chocolate Bash Business in a manner which is likely to cause the public to perceive it to be related to the Chocolate Bash Business.
Our Post-Opening Obligations
After you open your business:
- A. Developing products or services you will offer to your customers. Although it is our intent and practice to refine and develop products or services that you will offer to your customers, the franchise agreement does not obligate us to do so.
- C. Improving and developing your business; resolving operating problems you encounter. If you request, we will provide advice to you (by telephone or electronic communication) regarding improving and developing your business, and resolving operating problems you encounter, to the extent we deem reasonable.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 30)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, franchisees are restricted from engaging in any activity at their location other than operating the Chocolate Bash business. Furthermore, if the franchisee is an entity, they are prohibited from owning or operating any other business except for Chocolate Bash businesses. Franchisees are also restricted from co-branding or associating any other business activity with their Chocolate Bash business in a way that could suggest a relationship to the Chocolate Bash brand.
However, Chocolate Bash does offer assistance to franchisees in improving and developing their business. Specifically, the FDD states that while Chocolate Bash intends to refine and develop products or services for franchisees, the franchise agreement does not obligate them to do so. If a franchisee requests advice on improving and developing their business or resolving operational problems, Chocolate Bash will provide advice via telephone or electronic communication to the extent they deem reasonable.
While the FDD does not explicitly state whether a franchisee can request approval for a new good or service to sell, it does state that the franchisee shall not engage in any activity at the location other than the operation of the Chocolate Bash business. Given these restrictions, a franchisee would likely need to seek approval from Chocolate Bash before introducing any new goods or services. It would be prudent for a prospective franchisee to discuss this topic with the franchisor to fully understand the process and potential limitations.