How are Chocolate Bash franchisees billed for third-party vendor costs?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. | Varies | We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together a reasonable markup or charge for administering the payment program. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees may be required to use designated third-party vendors and suppliers for services such as computer support, mystery shopping, and customer feedback systems. Currently, there are no such vendors in place.
Franchisees may be billed directly by these vendors, or Chocolate Bash may collect payments on behalf of the vendors. If Chocolate Bash collects the payments, they may include a reasonable markup or charge for administering the payment program. The due date for these payments will vary depending on the vendor or the specific arrangement with Chocolate Bash.
This means that as a franchisee, you need to be prepared to potentially manage relationships and payments with multiple vendors, or to remit those payments to Chocolate Bash who will then pay the vendors. It is important to note that while there are currently no mandatory third-party vendors, Chocolate Bash retains the right to implement them in the future, which could impact your operating costs. Franchisees should clarify with Chocolate Bash what the criteria are for selecting these vendors and what recourse a franchisee has if they are dissatisfied with a vendor's services.