What advance notice must a Chocolate Fish Coffee franchisee provide to renew their franchise agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| c. Requirements for | To renew, you must give advance notice to us; | |
| franchisee to renew or | ||
| extend | ||
| be in compliance with all contractual | ||
| obligations to us and third parties; renovate to | ||
| our then-current standards; sign then-current | ||
| form of franchise agreement and related | ||
| documents (including personal guaranty); sign | ||
| general release (unless prohibited by applicable | ||
| law). | ||
| If you continue operating your franchise after | ||
| the expiration of the term without a renewal | ||
| agreement, then we may either terminate your | ||
| operation at any time or deem you to have | ||
| renewed your agreement for an additional | ||
| term. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, to renew a franchise agreement, a franchisee must give advance notice to the company. The FDD does not specify the exact length of advance notice required.
In addition to providing advance notice, the franchisee must be in compliance with all contractual obligations to Chocolate Fish Coffee and third parties. Franchisees must also renovate their location to meet the then-current standards, sign the then-current form of the franchise agreement and related documents (including a personal guaranty), and sign a general release (unless prohibited by applicable law).
It is important to note that if a Chocolate Fish Coffee franchisee continues to operate their franchise after the expiration of the term without a renewal agreement, the company has the option to either terminate the operation at any time or deem the agreement to have been renewed for an additional term. Prospective franchisees should clarify the specific advance notice period required for renewal with Chocolate Fish Coffee prior to signing the franchise agreement.