Is Chocolate Bash obligated to select the franchisee's site?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your business:
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. Your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
- (v) We are not obligated to assist you in conforming the premises of your site to local ordinances and building codes and obtaining any required permits. This will be your responsibility.
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 is not obligated to select the franchisee's site. However, Chocolate Bash will review and advise franchisees regarding potential locations that the franchisee submits. If a franchisee signs a Multi-Unit Development Agreement, Chocolate Bash will approve the location of future sites and territories for those sites, applying their then-current standards for sites and territories.
When signing the franchise agreement, the area in which the franchisee must select a site will be specified if the site is not already known and approved by Chocolate Bash. The franchisee's site is subject to Chocolate Bash's approval, and the franchisee must provide all required information and documents about the site to obtain this approval. Factors Chocolate Bash considers in approving sites include general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
Chocolate Bash has a 30-day time limit to approve or disapprove a proposed site after the franchisee submits all required documents and information. If Chocolate Bash and the franchisee cannot agree on a site, the franchisee will be unable to meet the obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless Chocolate Bash agrees to extend the deadline, the franchisee will be in default, and Chocolate Bash may terminate the franchise agreement. Chocolate Bash is not obligated to assist the franchisee in conforming the premises of the site to local ordinances and building codes or obtaining required permits, as this is the franchisee's responsibility.