Under what conditions can CB Franchising charge a Chocolate Bash franchisee for an inspection?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee thereof by any method that CB Franchising deems appropriate (which need not qualify as "notice" under Section 18.9). In the event of any dispute as to the contents of the Manual, CB Franchising's master copy will control.
- 11.2 Inspections. CB Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with CB Franchising's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. CB Franchising may videotape and/or take photographs of the inspection and the Business. Without limiting CB Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, CB Franchising can charge a franchisee for inspections under specific circumstances. These circumstances arise when an inspection is conducted due to a governmental report, a customer complaint, customer feedback, or because of a default or non-compliance with any System Standard by the franchisee. This includes follow-up inspections after a previous failed inspection.
If any of these situations occur, Chocolate Bash has the right to charge the franchisee for all out-of-pocket expenses incurred during the inspection. These expenses can include travel, lodging, and meals for the employees conducting the inspection. In addition to covering the out-of-pocket costs, Chocolate Bash may also charge its then-current inspection fee to the franchisee.
This policy means that Chocolate Bash franchisees need to maintain strict compliance with all System Standards and address any customer complaints promptly to avoid triggering inspections that could result in additional fees. Franchisees should also be aware that the cost of these inspections can vary, depending on the distance and duration of the inspection, as well as Chocolate Bash's prevailing inspection fee at the time.