What actions are considered 'refusing to cooperate' with an audit or inspection by Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (ix) Franchisee refuses to cooperate with or permit any audit or inspection by Chocolate Fish Franchising or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2;
ARTICLE 11. FRANCHISOR RIGHTS
- 11.2 Inspections. Chocolate Fish Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Chocolate Fish 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. Chocolate Fish Franchising may videotape and/or take photographs of the inspection and the Business. Chocolate Fish Franchising may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Chocolate Fish Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Chocolate Fish Franchising cond
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, refusing to cooperate with or permit any audit or inspection by Chocolate Fish Franchising or its agents or contractors, or otherwise failing to comply with Section 10.5 or Section 11.2 of the agreement, is grounds for default.
Section 11.2 states that Chocolate Fish Coffee may enter the premises of the business during normal business hours to conduct inspections. Franchisees are required to cooperate with these inspections, which may include observing operations, conducting physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Chocolate Fish Coffee is also permitted to videotape or take photographs during the inspection.
Chocolate Fish Coffee may set a minimum score requirement for inspections, and failure to meet or exceed this minimum score will be considered a default under the agreement. Franchisees are expected to correct any deficiencies noted during an inspection as soon as reasonably practical. Failure to cooperate with inspections or to address deficiencies could lead to further action by Chocolate Fish Coffee, as it constitutes a breach of the franchise agreement.