If Chocolate Bash approves a new good or service, is the franchisee required to offer it?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- "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 access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
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 the System Standards, which include standards for product and service offerings. System Standards are defined as the mandatory procedures, requirements, and/or standards of the Chocolate Bash system as determined by CB Franchising.
This means that Chocolate Bash can mandate certain products and services that franchisees must offer. The definition of System Standards encompasses a wide range of operational aspects, including the quality of products and services. Therefore, if Chocolate Bash includes a new good or service within its System Standards, franchisees are obligated to offer it.
This requirement ensures uniformity and quality control across all Chocolate Bash locations, which is a common practice in franchising. However, it also means franchisees have limited autonomy in deciding what products to offer and must adapt to changes implemented by the franchisor to maintain brand consistency and meet customer expectations.