If requested by CB Franchising, what must a Chocolate Bash franchisee do with the proposed lease?

According to Chocolate Bash's 2024 Franchise Disclosure Document, if CB Franchising requests, a franchisee must submit the proposed lease for their location to CB Franchising for written approval. The lease term, including any renewal options, must be no shorter than the term of the Franchise Agreement itself. Additionally, the franchisee must use commercially reasonable efforts to get the landlord to sign a rider to the lease, using the form that Chocolate Bash requires.

This requirement ensures that Chocolate Bash has some control over the franchisee's location and lease terms. By having the right to approve the lease, Chocolate Bash can ensure that the terms are favorable to the franchisee and that the lease is for a sufficient length of time. The rider to the lease further protects Chocolate Bash's interests by giving them certain rights, such as the right to take over the lease if the franchisee defaults.

For a prospective Chocolate Bash franchisee, this means they need to be prepared to share their proposed lease with Chocolate Bash and potentially negotiate terms with the landlord to meet Chocolate Bash's requirements. This could add time and complexity to the leasing process. Franchisees should factor this into their timeline and budget when securing a location. They should also understand the terms of the required lease rider and be prepared to explain them to the landlord.

It is common practice in franchising for franchisors to have some level of involvement in the franchisee's site selection and lease negotiation. This is because the location of the business is critical to its success, and the franchisor wants to ensure that the franchisee has a suitable location with favorable lease terms. However, the extent of the franchisor's involvement can vary, so it is important for prospective franchisees to understand the specific requirements of the franchise agreement.