What triggers Chocolate Bash to charge its actual costs?

According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchisor may charge franchisees their actual costs in several specific instances. These costs are payable if Chocolate Bash incurs expenses, including reasonable attorney fees, while trying to collect amounts owed by the franchisee. This means if a franchisee is behind on payments, they may be responsible for not only the original amount due but also any legal or administrative costs Chocolate Bash incurs to recover the debt.

Additionally, Chocolate Bash may charge its actual costs if they provide in-person support at the franchisee's request. This includes the fee itself, plus any out-of-pocket expenses like travel, lodging, and meals for the employees providing the support. Franchisees should be aware that requesting on-site assistance could result in significant charges beyond the initial problem they are trying to solve. Chocolate Bash may also require franchisees to reimburse them for expenses incurred while resolving customer complaints about the franchisee's business.

Furthermore, Chocolate Bash can charge its actual costs if an audit is conducted due to the franchisee's failure to submit required reports or other non-compliance issues, or if the audit reveals under-reported gross sales. Lastly, if Chocolate Bash conducts an inspection of the franchisee's business due to a governmental report, customer complaint, or the franchisee's default or non-compliance with system specifications, the franchisee will be responsible for Chocolate Bash's actual costs. These situations highlight the importance of franchisees maintaining accurate records, adhering to system standards, and promptly addressing any issues to avoid potentially substantial charges.