What is the relationship between the Chocolate Bash franchisee's obligations (Item 9) and the franchisor's assistance, advertising, and training (Item 11) in ensuring the successful operation of the franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
t-Opening Obligations
After you open your business:
- A. Developing products or services you will offer to your customers. Although it is our intent and practice to refine and develop products or services that you will offer to your customers, the franchise agreement does not obligate us to do so.
- B. Hiring and training employees. We will provide you with our suggested staffing levels (Section 5.2), suggested guidelines for hiring employees (Section 5.2), and operational instructions in the Manual which you can use as part of training new employees (Section 5.3). All hiring decisions and conditions of employment are your sole responsibility.
- C. Improving and developing your business; resolving operating problems you encounter. If you request, we will provide advice to you (by telephone or electronic communication) regarding improving and developing your business, and resolving operating problems you encounter, to the extent we deem reasonable. If we provide in-person support in
response to your request, we may charge a fee (currently $600 per day) plus any out-of-pocket expenses (such as travel, lodging, and meals for our employees providing onsite support). (Section 5.5)
- D. Establishing prices. Upon your request, we will provide recommended prices for products and services. (Section 5.5). We have the right to determine prices charged by our franchisees for goods and services (but only to the extent permitted by applicable law).
- E. Establishing and using administrative, bookkeeping, accounting, and inventory control procedures. We will provide you our recommended procedures for administration, bookkeeping, accounting, and inventory control (Section 5.5). We may make any such procedures part of required (and not merely recommended) procedures for our system.
- F. Marketing Fund. We will administer the Marketing Fund. (Section 5.5)
- G. Website. We will maintain a website for the Chocolate Bash brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which will be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives. We have the right to require you to participate in a local or regional advertising cooperative. We will define the area of the cooperative based on media markets, or other geographic criteria that we deem appropriate. Each franchisee in the area would have one vote per outlet (unless the franchisee is in default under its franchise agreement). The amount you must contribute to the cooperative will be determined by vote of the members, but not less than 1% of gross sales. If our own outlets are members of a cooperative, they must contribute to the cooperative on the same basis as franchisees, and they will vote on the same basis as other members. If our outlets have controlling voting power, there is no maximum on fees that could be imposed.
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Chocolate Bash outlines specific obligations and assistance measures designed to support franchisees in operating their businesses. While Item 9 details the franchisee's obligations, Item 11 specifies the franchisor's assistance, advertising support, and training programs. This includes pre-opening and post-opening assistance. The success of a Chocolate Bash franchise depends on the franchisee fulfilling their obligations and leveraging the support provided by the franchisor.
Before opening, Chocolate Bash provides assistance with site selection by offering location criteria and advising on potential locations submitted by the franchisee. They also supply standard building plans, specifications, system standards, and lists of approved vendors. Furthermore, Chocolate Bash offers pre-opening training to the Principal Executive and up to two additional employees at their headquarters or a designated Chocolate Bash location, without charging a training fee. The franchisee, however, is responsible for covering their own travel, lodging, and meal expenses. Additionally, Chocolate Bash will advise the franchisee on planning and executing their market introduction plan and provide on-site support during the business opening with at least 3 days of training and assistance.
After the Chocolate Bash business opens, the franchisor's obligations include refining products or services, although they are not contractually obligated to do so. They will provide suggested staffing levels, hiring guidelines, and operational instructions for training employees, but all hiring decisions remain the franchisee's responsibility. Upon request, Chocolate Bash will offer advice on improving the business and resolving operational problems, potentially charging $600 per day plus expenses for in-person support. They will also provide recommended prices for products and services and recommended procedures for administration, bookkeeping, accounting, and inventory control. The franchisor maintains a website for the Chocolate Bash brand, including the franchisee's business information and telephone number, and administers the Marketing Fund.
Overall, the relationship between the franchisee's obligations and the franchisor's assistance is interdependent. The franchisee is expected to manage the daily operations, make hiring decisions, and adhere to the franchisor's system standards. In return, Chocolate Bash provides essential support through training, advice, marketing, and operational guidelines to help the franchisee establish and maintain a successful business. The franchisee's active participation and adherence to the franchisor's system, combined with the franchisor's support, are crucial for the franchise's success.