To whom is the rent and lease security deposit paid for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ISE AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Franchise fee (see Note 1) | $45,000 - | $45,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent and Lease Security | $2,500 - | $16,000 | Check | Upon signing lease | Landlord |
| Deposit (see Note |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–15)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the rent and lease security deposit is paid to the landlord. The estimated cost for the rent and lease security deposit ranges from $2,500 to $16,000, and is due upon signing the lease.
Prospective franchisees should note that the lease security deposit is usually refundable unless money is owed to the landlord. The FDD indicates that Chocolate Bash expects franchisees will rent their location. Should a franchisee choose to purchase real estate instead, the costs will be significantly different from the estimated initial investment.
It is important for potential Chocolate Bash franchisees to carefully review and understand the lease terms and conditions, including the security deposit requirements, with the landlord before signing the lease agreement. Franchisees should also consider negotiating a "free rent" period to offset costs during the build-out phase of the business.