Does the provided text specify any conditions related to the execution of the Franchise Agreement and the Chocolate Bash Multi-Unit Development Agreement?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). CB Franchising and Franchisee desire that Franchisee develop multiple Chocolate Bash businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Chocolate Bash businesses on the following schedule:
| Name | Title |
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- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to CB Franchising. The Initial Franchise Fee is non-refundable.
- 2. Form of Agreement. For Store #1, Franchisee and CB Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Chocolate Bash franchise, Franchisee shall execute CB Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Chocolate Bash business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Chocolate Bash business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Chocolate Bash business.
| conflicts of law). The parties agree that any California law for the protection of franchisees or | ||||
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| business opportunity purchasers will not apply unless its jurisdictional requirements are met | ||||
| independently without | reference to this | Section 6. The | provisions of Article | 17 (Dispute |
- 4. Default and Termination. CB Franchising may terminate this MUDA by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee fails to satisfy the development schedule;
Source: Item 23 — RECEIPTS (FDD pages 39–101)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, several conditions pertain to the execution and ongoing development under the Multi-Unit Development Agreement (MUDA). Specifically, the Franchise Agreement for the first store is executed simultaneously with the MUDA. For each subsequent Chocolate Bash franchise, the franchisee must execute the then-current standard form of the franchise agreement within three business days of leasing or acquiring a location. The MUDA itself does not grant the franchisee the right to operate a Chocolate Bash business; this right is only conferred through a separate franchise agreement for each location.
Furthermore, the franchisee's right to develop additional Chocolate Bash franchises beyond the first store is contingent upon meeting certain conditions. The franchisee must demonstrate sufficient financial and organizational capacity to develop, open, operate, and manage each additional Chocolate Bash business, as determined by Chocolate Bash. Additionally, the franchisee must be in full compliance with all brand requirements at its existing Chocolate Bash businesses and must not be in default under any Franchise Agreement or other agreement with Chocolate Bash.
These conditions ensure that franchisees expanding under a MUDA maintain the brand's standards and have the resources to successfully manage multiple locations. Failure to meet the development schedule outlined in the MUDA or defaulting on any franchise agreement can lead to termination of the MUDA by Chocolate Bash. However, the document also states that the franchisee's commitment to develop Chocolate Bash businesses is in the nature of an option only, limiting liability for lost future revenues or profits from unopened businesses if the MUDA is terminated due to the franchisee's default.