Does Chocolate Bash provide State Addenda to the Disclosure Document?

According to the 2024 Chocolate Bash Franchise Disclosure Document, the document includes state addenda. Specifically, Exhibit E to the disclosure document is titled "State Addenda to Disclosure Document." The FDD includes a California Addendum to the Disclosure Document.

The California addendum includes specific modifications and disclosures required by California law. For example, it notes that California Corporations Code, Section 31125 requires the franchisor to give the franchisee a disclosure document, approved by the Department Of Financial Protection and Innovation, before any proposed material modification of an existing franchise.

Additionally, the California addendum states that California law will govern the relationship for franchisees operating in California, regardless of any conflicting choice of law provisions in the franchise agreement. It also clarifies that certain provisions in the franchise agreement, such as covenants not to compete and liquidated damages clauses, may not be enforceable under California law. The addendum also addresses the franchisee's rights concerning termination, transfer, or non-renewal of a franchise under California Business and Professions Code Sections 20000 through 20043.

For prospective Chocolate Bash franchisees, especially those in California, it is crucial to carefully review the state addendum and understand how it modifies the standard franchise agreement. Franchisees should be aware of their rights and obligations under California law, as outlined in the addendum, and consult with legal counsel to ensure full compliance and understanding of the franchise agreement's terms within the context of California law.