How often can CB Franchising require a Chocolate Bash franchisee to remodel?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, CB Franchising may require Franchisee to undertake and complete a Remodel of the Location to CB Franchising's satisfaction.
Franchisee must complete the Remodel in the time frame specified by CB Franchising.
CB Franchising may require the Franchisee to submit plans for CB Franchising's reasonable approval prior to commencing a required Remodel.
CB Franchising's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, CB Franchising has the right to mandate that franchisees undertake and complete a remodel of their location to meet the franchisor's satisfaction. The franchisee is responsible for completing the remodel within the timeframe that Chocolate Bash specifies. Franchisees may also be required to submit plans for the remodel for Chocolate Bash's approval before starting the work.
However, Chocolate Bash's ability to require remodels is limited. A remodel will not be required during the first two or last two years of the franchise term. There is an exception if a remodel is required as a condition for renewal of the term or a transfer of the franchise.
Furthermore, Chocolate Bash will not require a remodel more than once every five years. The five-year period is measured from the date the franchisee was required to complete the previous remodel. This provides some predictability for franchisees in terms of capital expenditure on remodeling.