edge_case

Can a Chocolate Bash franchisee sell services online if the customer is not physically at the premises?

Chocolate_Bash Franchise · 2024 FDD

Answer from 2024 FDD Document

CB Franchising retains the right to:

  • (iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Chocolate Bash outlets.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 30)

What This Means (2024 FDD)

According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees may be able to sell products and services online, even if the customer is not physically at the premises. CB Franchising retains the right to sell and license others to sell products and services in the franchisee's territory through channels of distribution, including the internet, other than Chocolate Bash outlets. This indicates that while the franchisor can engage in online sales within a franchisee's territory, the franchisee themselves may also have the opportunity to do so.

This has significant implications for a prospective Chocolate Bash franchisee. It suggests that franchisees are not necessarily restricted to only serving customers who visit their physical location. The ability to sell online could expand their customer base and revenue potential. However, it also means that franchisees may face competition from the franchisor or other licensees within their own territory through online channels.

It is important for potential franchisees to clarify the specifics of online sales. They should ask Chocolate Bash about the policies and procedures for online sales, including whether franchisees are allowed to operate their own online stores or if sales are primarily managed through the franchisor's website. Understanding the franchisor's strategy for online sales and how it impacts individual franchisees is crucial for making an informed investment decision.

Furthermore, prospective franchisees should inquire about any fees or revenue-sharing arrangements related to online sales. It is essential to understand how online sales will be tracked and how revenue will be distributed between the franchisor and the franchisee. This information will help franchisees assess the potential profitability of online sales and determine whether it is a viable strategy for their business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.