How are Chocolate Bash franchisees billed for third-party vendors?

Question

Accepted Answer

| Type of Fee                        | Amount                                                                                        | Due Date                                            | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                             |
|------------------------------------|-----------------------------------------------------------------------------------------------|-----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Royalty | 6% of your gross sales | Monthly by the 5th day of the following month | See Note 1 and Note 2. |
| Marketing Fund Contribution | 1% of your gross sales | Monthly by the 5th day of the following month |  |
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly by the 5th day of the following month | We have the right to establish local or regional advertising cooperatives. There is no maximum on the contribution determined by the co-op. |
| New Manager Training fee | Currently, \$15,000 | Prior to attending training | If you send a manager or other employee to our training program after you open, we will charge our then-current training fee. |
| 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)

How are Chocolate Bash franchisees billed for third-party vendors?

Answer from 2024 FDD Document

What This Means (2024 FDD)

Type of Fee	Amount	Due Date	Remarks
Royalty	6% of your gross sales	Monthly by the 5th day of the following month	See Note 1 and Note 2.
Marketing Fund Contribution	1% of your gross sales	Monthly by the 5th day of the following month
Market Cooperative Contribution	As determined by co-op. Currently, none.	Monthly by the 5th day of the following month	We have the right to establish local or regional advertising cooperatives. There is no maximum on the contribution determined by the co-op.
New Manager Training fee	Currently, $15,000	Prior to attending training	If you send a manager or other employee to our training program after you open, we will charge our then-current training fee.
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.