What happens if a Chocolate Bash franchisee sells unapproved goods or services?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
endor, or distributor of Inputs which CB Franchising requires franchisees to use.
- "System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by CB Franchising, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet acces
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 are required to adhere to System Standards, which include standards for product and service offerings. The document does not explicitly state the consequences of selling unapproved goods or services. However, it does state that Chocolate Bash may terminate the franchise agreement if the franchisee does not comply with brand requirements.
Given this information, a Chocolate Bash franchisee who sells unapproved goods or services could potentially face consequences ranging from a warning to termination of their franchise agreement, depending on the severity and frequency of the violation. It is important to note that 'System Standards' include the quality of products and services, so deviating from approved offerings could be seen as a failure to meet these standards.
Prospective franchisees should seek clarification from Chocolate Bash regarding the specific repercussions of selling unapproved goods or services. Understanding the franchisor's enforcement policies and the potential remedies for non-compliance is crucial for making an informed investment decision.