Is there a geographic limit to where a Chocolate Bash franchisee can develop franchises under the MUDA?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Division of Securities Department of Financial Institutions Post Office Box 1768 Madison, WI 53701 (608) 266-2801 | Securities And Franchise Registration Wisconsin Securities Commission 201 West Washington Avenue, Suite 300 Madison, WI 53703 | |
EXHIBIT C
MULTI-UNIT DEVELOPMENT AGREEMENT
| Name | Shares or Percentage of Ownership | |---|---| | | | | | | | | | | | | | | | Background Statement: On the same day as they execute this MUDA, CB Franchising and Franchisee have entered into a Franchise Agreement for the franchise of a Chocolate Bash business (the "Franchise Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). CB Franchising and Franchisee desire that Franchisee develop multiple Chocolate Bash businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Chocolate Bash businesses on the following schedule:
| Name | Title |
|---|---|
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to CB Franchising.
Source: Item 23 — RECEIPTS (FDD pages 39–101)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document does not specify any geographic limitations for development under the Multi-Unit Development Agreement (MUDA) for Chocolate Bash franchises. The document outlines the franchisee's commitment to develop multiple Chocolate Bash businesses according to a set schedule.
However, the FDD states that the franchisee must meet certain conditions to develop additional Chocolate Bash franchises after the first store. These conditions include possessing sufficient financial and organizational capacity, in the reasonable judgment of CB Franchising, to manage each additional location. Additionally, the franchisee must be in full compliance with all brand requirements at its open Chocolate Bash businesses and not be in default under any agreement with CB Franchising.
Without explicit geographic limitations outlined in the provided excerpts, a prospective franchisee should directly inquire with Chocolate Bash regarding any geographic restrictions or requirements for multi-unit development. This will help clarify the scope of the development agreement and ensure that the franchisee can meet the franchisor's expectations for expansion.