Under the Chocolate Bash franchise agreement, how can the agreement be modified?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| m. Conditions for | FA: § 15.2 | Pay transfer fee; buyer meets our standards; |
| franchisor’s approval of | ||
| transfer FA: § 15.2 | ||
| MUDA: none | ||
| MUDA: none | buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). | |
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business FA: § 15.5 | ||
| MUDA: none | than to your spouse, sibling, or child), we have a right of first refusal. | |
| o. Franchisor’s option to | ||
| purchase franchisee’s | ||
| business Not Applicable | ||
| p. Death or disability of | If you die or become incapacitated, a new | |
| franchisee FA: §§ 2.4, 15.4 | ||
| MUDA: none | principal operator acceptable to us must be designated to operate the business, and your executor must transfer the business to a third party within nine months. | |
| q. Non-competition | Neither you, any owner of the business, or any | |
| covenants during the term | ||
| of the franchise FA: § 13.2 | ||
| MUDA: none | spouse of an owner may have ownership interest in, or be engaged or employed by, any competitor. | |
| r. Non-competition | For two years, no ownership or employment by | |
| covenants after the | ||
| franchise is terminated or | ||
| expires FA: § 13.2 | ||
| MUDA: none | a competitor located within five miles of your former territory or the territory of any other Chocolate Bash business operating on the date of termination. | |
| s. Modification of the | No modification or amendment of the | |
| agreement FA: § 18.4 | ||
| MUDA: § 7 | agreement will be effective unless it is in writing and signed by both parties. This provision does not limit our right to modify the Manual or system specifications. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchise agreement can only be modified if the changes are documented in writing and signed by both Chocolate Bash and the franchisee. This requirement ensures that any modifications to the original agreement are formally agreed upon and legally binding for both parties. This does not limit Chocolate Bash's right to modify the Manual or system specifications.
This provision is typical in franchise agreements, as it protects both the franchisor and franchisee from misunderstandings or disputes over alleged verbal agreements or informal changes. By requiring written and signed modifications, the agreement provides a clear record of any changes to the original terms. This clause does not limit Chocolate Bash's right to modify the Manual or system specifications.
However, it's important to note that while the franchise agreement itself requires a written modification, Chocolate Bash retains the right to modify its operations manual and system specifications without needing the franchisee's signature. These modifications to the manual can cover a broad range of operational aspects, so prospective franchisees should understand the implications of this unilateral modification right. Franchisees should clarify what constitutes the 'Manual' and 'system specifications' with Chocolate Bash to fully understand the scope of changes that can be made without their consent.