What rights does CB Franchising retain outside of the Chocolate Bash franchisee's territory?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
CB Franchising retains the right to:
(i) establish and license others to establish and operate Chocolate Bash businesses outside the Territory;
(ii) operate and license others to operate businesses anywhere that do not operate under the Chocolate Bash brand name; and
(iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Chocolate Bash outlets.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, CB Franchising retains specific rights outside of a franchisee's designated territory. These rights allow Chocolate Bash to expand its brand and distribution channels beyond individual franchise locations.
Specifically, CB Franchising has the right to establish and license others to establish and operate Chocolate Bash businesses outside of a franchisee's territory. This means that Chocolate Bash can continue to grow its franchise network in different geographic areas without being restricted by existing franchisees' territories. Additionally, CB Franchising can operate and license others to operate businesses anywhere that do not operate under the Chocolate Bash brand name, allowing them to diversify their business ventures.
Furthermore, Chocolate Bash retains the right to sell and license others to sell products and services in the franchisee's territory through other channels of distribution, including the internet, as long as these channels are not Chocolate Bash outlets. This enables Chocolate Bash to explore alternative sales methods and reach customers within a franchisee's territory through online platforms or other distribution networks, providing additional revenue streams for the company.