Is there a contractual limit on the frequency that Chocolate Bash can require point-of-sale system upgrades?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
t with a third party.
You must upgrade or update any system when we determine. There is no contractual limit on the frequency or cost of this obligation.
We estimate that the annual cost of any optional or required maintenance, updating, upgrading, or support contracts will be $100 - $250 per month depending on the level of support you choose.
You must give us independent access to the information that will be generated or stored in these systems. The information that we may access will include sales, customer data, and reports. There is no contractual limitation on our right to access the information.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–25)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, there is no contractual limit on how often Chocolate Bash can require franchisees to upgrade or update their point-of-sale (POS) or computer systems. Chocolate Bash maintains the right to mandate these upgrades whenever they deem necessary. This means a franchisee could face unexpected costs related to system updates at any time during the franchise term.
The cost to purchase the initial point-of-sale and computer systems is estimated to be between $1,000 and $2,000. In addition to the purchase price, Chocolate Bash estimates that the annual cost of optional or required maintenance, updating, upgrading, or support contracts will be $100 to $250 per month, depending on the level of support the franchisee chooses. However, because Chocolate Bash can require upgrades at any time, the franchisee should be prepared for potentially higher costs than estimated.
It is important to note that Chocolate Bash is not obligated to provide any ongoing maintenance, repairs, upgrades, or updates themselves, nor do they require franchisees to enter into a contract with a third party for these services. Franchisees are responsible for ensuring their systems meet Chocolate Bash's requirements, whatever those may be, and should factor this uncertainty into their financial planning. Prospective franchisees should discuss with Chocolate Bash what factors might trigger a system upgrade and how frequently upgrades have been required for existing locations.