Where on the Chocolate Bash summary page can I find information about the franchisee?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee.
If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify CB Franchising within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.
The Principal Executive must have at least 10% ownership interest in Franchisee.
The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business.
If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to CB Franchising's reasonable approval.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to CB Franchising, in the form of Attachment 3.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, the Summary Page of the Franchise Agreement contains information about the franchisee. Specifically, Attachment 1 to the Franchise Agreement identifies each owner, officer, and director of the franchisee, and describes the nature and extent of each owner's interest in the franchisee. If any of this information changes (other than through a Transfer of ownership), the franchisee must notify Chocolate Bash Franchising within 10 days.
The Summary Page also designates a "Principal Executive" who is primarily responsible for the Chocolate Bash business and has decision-making authority on behalf of the franchisee. This Principal Executive must have at least a 10% ownership interest in the franchisee. While the Principal Executive does not have to be the day-to-day general manager, they must devote substantial time and attention to the business. If the Principal Executive changes due to death, incapacitation, transfer of interest, or other reasons, the franchisee must promptly designate a new Principal Executive, subject to Chocolate Bash Franchising's approval.
If the franchisee is an entity (like an LLC or corporation), each Owner must sign a personal guaranty of the franchisee's obligations to Chocolate Bash Franchising, using the form provided as Attachment 3 to the Franchise Agreement. The Summary Page also specifies the Location and Territory granted to the franchisee. If these are not stated on the Summary Page, they will be determined later according to Section 6.1 of the Franchise Agreement. The Marks (trade name and logo) are also contained on the Summary Page.