What is the transfer fee required by CB Franchising for a Chocolate Bash franchise transfer?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
ce on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing CB Franchising at least 60 days prior notice of the proposed Transfer, and without obtaining CB Franchising's consent. In granting any such consent, CB Franchising may impose conditions, including, without limitation, the following:
- (i) CB Franchising receives a transfer fee equal to $10,000;
- (ii) the proposed assignee and its owners have completed CB Franchising's franchise application processes, meet CB Franchising's then-applicable standards for new franchisees, and have been approved by CB Franchising as franchisees;
- (iii) the proposed assignee is not a Competitor;
- (iv) the proposed assignee executes CB Franchising's then-current form of franchise agreement and any related documents, which form may contain materially different provisions than this Agreement;
- (v) all owners of the proposed assignee provide a guaranty in accordance with Section 2.5;
- (vi) Franchisee has paid all monetary obligations to CB Franchising and its affiliates, and t
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise, Chocolate Bash requires a transfer fee of $10,000. This fee must be paid before CB Franchising will approve the transfer.
In addition to the transfer fee, Chocolate Bash may impose other conditions on the transfer. These conditions include ensuring the proposed assignee meets the then-applicable standards for new franchisees and is not a competitor. The assignee must also complete Chocolate Bash's franchise application processes and be approved by Chocolate Bash as a franchisee.
Furthermore, the proposed assignee must execute Chocolate Bash's current form of franchise agreement, which may contain materially different provisions than the original agreement. All owners of the proposed assignee must provide a guaranty, and the franchisee must have paid all monetary obligations to Chocolate Bash and its affiliates, as well as to any lessor, vendor, supplier, or lender to the business. The proposed assignee and their owners and employees may also be required to undergo additional training as determined by Chocolate Bash.