Are there specific requirements for the presentation of 'Marks' as part of the Chocolate Bash 'System Standards'?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
er, vendor, or distributor of Inputs which CB Franchising requires franchisees to use.
- "System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by CB Franchising, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
"Territory" means the territory stated on the Summary Page. If no territory is stated on the Summary Page, then the Territory is determined in accordance with Section 6.1.
"Transfer" means for Franchisee (or any Owner) to voluntarily or involuntarily transfer, sell, or dispose of, in any single or series of transactions, (i) substantially all of the assets of the Business, (ii) this Agreement, (iii) direct or indirect ownership interest of more than 25% of the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. CB Franchising grants to Franchisee the right to operate a Chocolate Bash business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Chocolate Bash business at the Location for the entire term of this Agreement.
- 2.2 Protected Territory. CB Franchising shall not establish, nor license the establishment of, another Chocolate Bash business within the Territory. CB Franchising retains the right to:
- (i) establish and license others to establish and operate Chocolate Bash businesses outside the Territory;
- (ii) operate and license others to operate businesses anywhere that do not operate under the Chocolate Bash brand name; and
- (iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Chocolate Bash outlets.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, the 'System Standards' include requirements for the presentation of 'Marks'. 'Marks' are defined as the trade name and logo on the Summary Page, as well as any other trade names, trademarks, service marks, and logos that Chocolate Bash specifies for use in the business.
Chocolate Bash may require franchisees to Remodel the Location to conform to System Standards, including the presentation of the Marks. This could involve changes to the building design, exterior facade, trade dress, signage, fixtures, furnishings, equipment, decor, and color schemes. Franchisees are responsible for using the Marks as specified by Chocolate Bash and have no rights to the Marks other than using them in compliance with the Franchise Agreement. All goodwill associated with the Marks, including any goodwill arising from the franchisee's operation of the business, benefits Chocolate Bash exclusively.
Chocolate Bash retains the right to add, modify, or discontinue any Marks used within the system, and franchisees must comply with these changes at their own expense within a reasonable timeframe. This ensures that all Chocolate Bash locations maintain a consistent brand image and adhere to the franchisor's current standards for brand representation. Franchisees must use all Marks specified by Chocolate Bash, and only in the manner as Chocolate Bash may require.