Is a separate franchise agreement required for each Chocolate Bash business?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 39–101)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a separate franchise agreement is required for each Chocolate Bash business a franchisee intends to operate. Specifically, the franchisee and Chocolate Bash execute a Franchise Agreement simultaneously with the Multi-Unit Development Agreement (MUDA) for the first store.
For each additional Chocolate Bash franchise, the franchisee must execute Chocolate Bash's then-current standard form of franchise agreement no later than three business days after leasing or acquiring a location. The MUDA does not grant the franchisee the right to operate a Chocolate Bash business.
The franchisee can only operate each Chocolate Bash business under a separate franchise agreement executed according to the MUDA for each business. This requirement ensures that each location operates under the most current terms and conditions set by Chocolate Bash and allows for individual performance monitoring and accountability for each franchise unit.