What is the limitation on Chocolate Bash's right to determine prices charged by franchisees?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- D. Establishing prices. Upon your request, we will provide recommended prices for products and services. (Section 5.5). We have the right to determine prices charged by our franchisees for goods and services (but only to the extent permitted by applicable law).
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, Chocolate Bash has the right to determine the prices franchisees charge for goods and services. However, this right is limited by applicable law. This means that while Chocolate Bash can suggest or recommend pricing, any legal restrictions on price-setting will take precedence.
This is a fairly standard clause in franchise agreements. Franchisees should be aware of any local or federal laws that might impact pricing decisions, such as laws against price fixing or other anti-competitive practices. It is the franchisee's responsibility to ensure their pricing complies with all applicable laws.
Prospective franchisees should consult with a legal expert to understand the specific implications of this clause in their region and industry. Understanding these limitations is crucial for maintaining a compliant and profitable Chocolate Bash franchise.