What obligations does a Chocolate Bash franchisee have regarding site selection as detailed in Item 9, and how does this relate to the franchisor's site approval process in Item 11?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Our Pre-Opening Obligations
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.
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchisee is responsible for selecting a location that meets the franchisor's criteria. Item 11 states that Chocolate Bash will review and advise the franchisee regarding potential locations submitted by the franchisee. However, Chocolate Bash is not obligated to further assist in locating a site or negotiating the purchase or lease of the site. The franchisee is responsible for conforming the premises to local ordinances and building codes and obtaining required permits.
If the site is not already known and approved when the franchise agreement is signed, the agreement will specify the area in which the franchisee must select a site. The site is subject to Chocolate Bash's approval, and the franchisee must provide all required information and documents about the site. Factors considered for site approval include general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
Chocolate Bash has 30 days to approve or disapprove a proposed site after the franchisee submits all required documents and information. If the franchisee and Chocolate Bash cannot agree on a site, the franchisee may be unable to meet the deadline for opening the franchise, potentially leading to default and termination of the franchise agreement unless an extension is agreed upon. If a franchisee signs a Multi-Unit Development Agreement, Chocolate Bash will approve the location of future sites and territories based on their then-current standards.