Where must all sales be made for a Chocolate Bash franchise?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall develop, open and operate a Chocolate Bash business at the Location for the entire term of this Agreement.
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject to our approval.
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 50,000-100,000 Population Base. Although the areas will be defined by population base, there will be geographic, state or county lines that actually document the areas that will constitute territories. Other factors to determine the specific territory will include: average household income (or other wealth indicators), population density, existence of competition, capabilities of the buyer, etc. The territory area will be determined for each franchisee at the time of the signing of the franchise agreement and will most likely have the location as the epicenter of the territory boundaries.
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right establish a mutually-agreed number of additional outlets. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 30)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, a franchisee must operate their Chocolate Bash business at a specific location. The franchise agreement specifies this location, and if it's not known when the agreement is signed, Chocolate Bash must approve it later.
This means that franchisees are expected to conduct their primary business operations, including sales, from the physical location outlined in their franchise agreement. This location is considered the base of operations for the entire term of the agreement. Franchisees cannot simply move their business without approval.
Chocolate Bash grants franchisees a territory, typically with a population base of approximately 50,000 to 100,000 people. While the territory is defined by population, it is documented using geographic, state, or county lines. The location of the franchise is often the epicenter of the territory. A Chocolate Bash franchisee does not have the right to relocate their business, and Chocolate Bash has no obligation to approve any request for relocation. Chocolate Bash's policy is to approve relocation on a case-by-case basis, considering factors such as changes in demographics, profitability, or loss of premises beyond the franchisee's control.
Unless a franchisee signs a Multi-Unit Development Agreement (MUDA), they do not have the right to establish additional franchised outlets. If a MUDA is in place, the franchisee can establish an agreed-upon number of additional outlets, subject to compliance with a development schedule, sufficient financial and organizational capacity, adherence to brand requirements, and no defaults under any agreements with Chocolate Bash. Chocolate Bash must approve the location of future sites, applying their then-current standards for sites and territories.