Who is liable for damages caused during the removal of Chocolate Bash signs and materials from the leased premises?

According to Chocolate Bash's 2024 Franchise Disclosure Document, Chocolate Bash or its designee is liable to the landlord for any damages caused during the removal of Chocolate Bash signs and other branded materials from the leased premises. This liability arises when Chocolate Bash or its designee enters the leased premises to remove these items after the expiration or termination of the Franchise Agreement or the lease, or after the tenant's right of possession has been terminated. However, this is conditional on Chocolate Bash providing reasonable prior notice to the landlord before entering the premises for removal.

This clause protects the landlord by ensuring they can recover costs for any damage to their property caused by the removal process. It also implies that Chocolate Bash has the right to enter the premises for this purpose, which is a standard practice in franchising to maintain brand consistency and prevent unauthorized use of trademarks after a franchise agreement ends. The franchisee is not directly responsible for these removal costs or damages, shifting the onus to Chocolate Bash.

This arrangement benefits the franchisee by relieving them of the responsibility for the physical removal of branded materials and any associated costs or liabilities for damages. However, franchisees should be aware that they are typically responsible for the initial 'de-identification' of the location, as outlined elsewhere in the FDD. This section clarifies the specific scenario where Chocolate Bash takes over the removal process and assumes liability for any resulting damages to the property, provided reasonable notice is given to the landlord.