Who must provide on-site supervision of the Chocolate Bash Business?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.
The Principal Executive must have at least 10% ownership interest in Franchisee.
The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business.
If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to CB Franchising's reasonable approval.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, the franchisee does not have to serve as a day-to-day general manager of the business. However, the Principal Executive must devote substantial time and attention to the Chocolate Bash business.
The "Principal Executive" is the person designated on the Summary Page of the Franchise Agreement who is primarily responsible for the business and has decision-making authority on behalf of the franchisee. This Principal Executive must have at least a 10% ownership interest in the Chocolate Bash franchise.
If the Principal Executive dies, becomes incapacitated, transfers their interest, or otherwise ceases to be the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Chocolate Bash's approval.