If a Chocolate Bash franchisee develops advertising materials, is Chocolate Bash obligated to pay for their use?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–25)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if a franchisee develops their own advertising or marketing materials, Chocolate Bash is not obligated to pay for their use. The franchisee must submit any proposed advertising or marketing material to Chocolate Bash for approval at least 14 days prior to use. If Chocolate Bash does not respond within that time, the material is deemed rejected.
Chocolate Bash retains the right to use any advertising or marketing materials developed by a franchisee for any purpose. This means that a franchisee could invest time and resources into creating advertising, only to have Chocolate Bash use it without providing any compensation to the franchisee.
This policy is important for prospective franchisees to consider, as it means they will bear the full cost of developing their own advertising materials, with no guarantee that Chocolate Bash will not use those materials for its own benefit without payment. Franchisees should factor in these potential advertising costs and the risk of uncompensated use when evaluating the overall investment and potential return on investment for a Chocolate Bash franchise.