What is the title of the person a Chocolate Bash franchisee must designate to be primarily responsible for the business?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 29–30)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee must designate a "Principal Executive" who will be primarily responsible for the Chocolate Bash business. This individual must be identified on the Summary Page of the franchise agreement and have decision-making authority on behalf of the franchisee.
The Principal Executive is not required to be the day-to-day general manager of the business, but they must devote substantial time and attention to it. This suggests that Chocolate Bash allows for a more hands-off ownership model, where the Principal Executive can focus on higher-level strategic decisions while delegating daily operations to a manager.
Furthermore, the Principal Executive must have at least a 10% ownership interest in the Chocolate Bash franchise. If the initially designated Principal Executive dies, becomes incapacitated, transfers their interest, or otherwise ceases to be the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Chocolate Bash's approval. This ensures that there is always a responsible and invested party overseeing the franchise.