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ROCKY MOUNTAIN CHOCOLATE FACTORY FRANCHISE AGREEMENT

Franchise Agreement

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This Franchise Agreement involves

ROCKY MOUNTAIN CHOCOLATE FACTORY INC

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Title: ROCKY MOUNTAIN CHOCOLATE FACTORY FRANCHISE AGREEMENT
Governing Law: Colorado     Date: 7/12/2005
Industry: FODMFG     Sector: NONCYC

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exv10w4
 

Exhibit 10.4

 

 

 

 

 

ROCKY MOUNTAIN CHOCOLATE FACTORY

FRANCHISE AGREEMENT

 

 

 

 

 

Franchisee:                                                                            

 

 

Date:                                                                                      

 

 

Franchised Location:                                                             

 

 

                                                                                               

 


 

ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
FRANCHISE AGREEMENT
TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

 

 

1.

 

PURPOSE

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

2.

 

GRANT OF FRANCHISE

 

 

1

 

 

 

 

2.1.

 

 

Grant of Franchise

 

 

1

 

 

 

 

2.2.

 

 

Scope of Franchise Operations

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

3.

 

FRANCHISED LOCATION AND DESIGNATED AREA

 

 

2

 

 

 

 

3.1.

 

 

Franchised Location

 

 

2

 

 

 

 

3.2.

 

 

Limitation on Franchise Rights; Relocation

 

 

2

 

 

 

 

3.3.

 

 

Franchisor’s Reservation of Rights

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

4.

 

INITIAL FRANCHISE FEE

 

 

3

 

 

 

 

4.1.

 

 

Initial Franchise Fee

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

5.

 

DEVELOPMENT OF FRANCHISED LOCATION

 

 

3

 

 

 

 

5.1.

 

 

Approval of Lease

 

 

3

 

 

 

 

5.2.

 

 

Conversion and Design

 

 

4

 

 

 

 

5.3.

 

 

Signs

 

 

4

 

 

 

 

5.4.

 

 

Equipment

 

 

4

 

 

 

 

5.5.

 

 

Permits and Licenses

 

 

5

 

 

 

 

5.6.

 

 

Commencement of Operations

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

6.

 

TRAINING

 

 

5

 

 

 

 

6.1.

 

 

Initial Training Program

 

 

5

 

 

 

 

6.2.

 

 

Length of Training

 

 

6

 

 

 

 

6.3.

 

 

Additional Training

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

7.

 

DEVELOPMENT ASSISTANCE

 

 

6

 

 

 

 

7.1.

 

 

Franchisor’s Development Assistance

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

8.

 

OPERATIONS MANUAL

 

 

7

 

 

 

 

8.1.

 

 

Operations Manual

 

 

7

 

 

 

 

8.2.

 

 

Confidentiality of Operations Manual Contents

 

 

7

 

 

 

 

8.3.

 

 

Changes to Operations Manual

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

9.

 

OPERATING ASSISTANCE

 

 

8

 

 

 

 

9.1.

 

 

Franchisor’s Services

 

 

8

 

 

 

 

9.2.

 

 

Additional Franchisor Services

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

10.

 

FRANCHISEE’S OPERATIONAL COVENANTS

 

 

8

 

 

 

 

10.1.

 

 

Store Operations

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

11.

 

ROYALTIES

 

 

11

 

 

 

 

11.1.

 

 

Monthly Royalty

 

 

11

 

 

 

 

11.2.

 

 

Gross Retail Sales

 

 

12

 

 

 

 

11.3.

 

 

Royalty Payments

 

 

12

 

 

 

 

11.4.

 

 

Authorization for Prearranged Payments by Electronic Transfer

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

12.

 

ADVERTISING

 

 

13

 

 

 

 

12.1.

 

 

Approval of Advertising

 

 

13

 

 

 

 

12.2.

 

 

Local Advertising

 

 

13

 

 

 

 

12.3.

 

 

Marketing and Promotion Fee

 

 

13

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12.4.

 

 

Regional Advertising Programs

 

 

14

 

 

 

 

12.5.

 

 

Marketing Services

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

13.

 

QUALITY CONTROL

 

 

15

 

 

 

 

13.1.

 

 

Compliance with Operations Manual

 

 

15

 

 

 

 

13.2.

 

 

Standards and Specifications

 

 

15

 

 

 

 

13.3.

 

 

Inspections

 

 

15

 

 

 

 

13.4.

 

 

Restrictions on Services and Products

 

 

15