When is the Market Cooperative Contribution due for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | 6% of your gross sales | Monthly by the 5th day of the following month | See Note 1 and Note 2. |
| Marketing Fund Contribution | 1% of your gross sales | Monthly by the 5th day of the following month | |
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly by the 5th day of the following month | We have the right to establish local or regional advertising cooperatives. There is no maximum on the contribution determined by the co-op. |
Source: Item 6 — OTHER FEES (FDD pages 9–13)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the Market Cooperative Contribution is due monthly by the 5th day of the following month. Currently, the amount of this contribution is determined by the cooperative, and is currently set at none. However, Chocolate Bash retains the right to establish local or regional advertising cooperatives, and there is no maximum limit on the contribution amount that the co-op can determine.
This means that while franchisees are not currently required to pay into a market cooperative, this could change if a co-op is established in their area. If a market cooperative is established, the amount franchisees will be required to contribute will be determined by that co-op, and Chocolate Bash does not place a limit on this amount.
Prospective franchisees should inquire about the likelihood of market cooperatives being formed in their area, and how the contribution amount is typically determined by such co-ops. Understanding the potential for this additional expense is crucial for accurate financial planning.