Under what conditions can a Chocolate Bash franchisee make sales through means other than retail at the location?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
CB Franchising retains the right to:
(iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Chocolate Bash outlets.
2.1 Grant. CB Franchising grants to Franchisee the right to operate a Chocolate Bash business solely at the Location.
If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1.
Franchisee shall develop, open and operate a Chocolate Bash business at the Location for the entire term of this Agreement.
7.19 No Other Activity at the Location. Franchisee shall not engage in any activity at the Location other than operation of the Chocolate Bash Business.
7.20 No Other Businesses. If Franchisee is an entity, Franchisee shall not own or operate any other business except Chocolate Bash businesses.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Chocolate Bash Franchise Disclosure Document, a franchisee is generally restricted to operating the Chocolate Bash business solely at the specified location. Specifically, the franchise agreement states that the franchisee must develop, open, and operate the Chocolate Bash business at the designated location for the entire term of the agreement.
However, CB Franchising retains the right to sell and license others to sell products and services in the franchisee's territory through other distribution channels, including the internet, that are not Chocolate Bash outlets. This means that while a franchisee is restricted to retail sales at their physical location, Chocolate Bash itself can engage in other sales methods within the franchisee's territory.
Furthermore, the franchise agreement stipulates that the franchisee shall not engage in any activity at the location other than the operation of the Chocolate Bash Business. Additionally, if the franchisee is an entity, it cannot own or operate any other business except Chocolate Bash businesses. This reinforces the restriction on conducting other types of sales or business activities from the Chocolate Bash location. Therefore, a Chocolate Bash franchisee is limited to sales made directly at the retail location, while Chocolate Bash Franchising retains the right to pursue other sales channels within the franchisee's territory.