Does Chocolate Bash grant franchisees an exclusive territory?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory Protection
We grant you an exclusive territory. In your territory, we will not open a Chocolate Bash outlet, nor license or franchise another party to open a Chocolate Bash outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Soliciting by You Outside Your Territory
There are no restrictions on you from soliciting or accepting orders from consumers outside of your territory, except that we reserve the right to control all internet-based marketing.
Competition by Us Under Different Trademarks
Neither we nor any of our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark selling goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Item 13 TRADEMARKS
Principal Trademark
The following is the principal trademark that we license to you. This trademark is owned by our Affiliate, Albasha, LLC. It is registered on the Principal Register of the United States Patent and Trademark Office.
| Trademark | Registration Date | Registration Number | Renewal Date | |---|---|---|---| | Chocolate Bash | 7/11/2017 | 5240379 | 7/11/27 | | | 7/18/2019 | 5244703 | 7/18/25 | All required affidavits have been filed.
Source: Item 12 — TERRITORY (FDD pages 25–26)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, franchisees are granted an exclusive territory. Within this territory, Chocolate Bash will not open another Chocolate Bash outlet, nor will they license or franchise another party to do so. The continuation of this territorial protection is not dependent on the franchisee achieving a certain sales volume, market penetration, or any other contingency. Furthermore, Chocolate Bash states that there are no circumstances that would permit them to modify the franchisee's territorial rights.
The franchise agreement will specify the territory, which Chocolate Bash determines. The territory will have an approximate population base of 50,000 to 100,000 people. While the areas are defined by population, geographic, state, or county lines will document the areas that constitute territories. Other factors that determine the specific territory include average household income, population density, and the existence of competition. The territory area will be determined for each franchisee when signing the franchise agreement and will most likely have the location as the epicenter of the territory boundaries.
However, it is important to note that Chocolate Bash retains the right to solicit and accept orders from consumers inside the franchisee's territory through other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, without providing any compensation to the franchisee. Additionally, Chocolate Bash and its affiliates are not restricted from operating or franchising a business under a different trademark selling similar goods or services, although they do not currently have plans to do so. These stipulations could potentially impact a franchisee's market share and revenue within their exclusive territory.