What is a Chocolate Bash franchisee required to disclose to CB Franchising regarding the business?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ry through channels of distribution (including the internet) other than Chocolate Bash outlets.
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee. If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify CB Franchising within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee must notify CB Franchising within 10 days if any information on Attachment 1 changes, provided that the change does not constitute a Transfer. Attachment 1 identifies each owner, officer, and director of the franchisee, and describes the nature and extent of each owner's interest in the franchisee.
Furthermore, if the franchisee proposes a location for their Chocolate Bash business, they must submit the proposed location to CB Franchising for acceptance, along with all related information CB Franchising may request. This ensures that Chocolate Bash has the necessary details to evaluate and potentially approve the site.
In essence, Chocolate Bash requires franchisees to keep them informed about ownership and management details, as well as any proposed business locations, to maintain brand consistency and ensure compliance with the franchise agreement.