Under what conditions might Chocolate Bash charge a fee for support after a Chocolate Bash franchise opens?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
sole responsibility.
- C. Improving and developing your business; resolving operating problems you encounter. If you request, we will provide advice to you (by telephone or electronic communication) regarding improving and developing your business, and resolving operating problems you encounter, to the extent we deem reasonable. If we provide in-person support in
response to your request, we may charge a fee (currently $600 per day) plus any out-of-pocket expenses (such as travel, lodging, and meals for our employees providing onsite support). (Section 5.5)
- D. Establishing prices. Upon your request, we will provide recommended prices for products and services. (Section 5.5). We have the right to determine prices charged by our franchisees for goods and services (but only to the extent permitted by applicable law).
- E.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–25)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, Chocolate Bash may charge a fee for providing in-person support after the franchise opens. Specifically, if a franchisee requests advice regarding improving and developing their business or resolving operating problems, Chocolate Bash will provide advice via telephone or electronic communication to the extent they deem reasonable. However, if the franchisee requests in-person support, Chocolate Bash may charge a fee.
The fee for in-person support is currently $600 per day, plus reimbursement for any out-of-pocket expenses incurred by Chocolate Bash employees. These expenses include travel, lodging, and meals. This means that a Chocolate Bash franchisee could face significant costs if they require on-site assistance from the franchisor to address operational issues or improve their business performance.
In addition, if a Chocolate Bash franchisee needs to send a new general manager to the initial training program, Chocolate Bash will charge a fee of $150 per day for the training. While Chocolate Bash does not currently require additional training programs or refresher courses, they retain the right to implement them in the future. This could create an additional expense for franchisees if Chocolate Bash mandates further training.