What agreement is executed simultaneously with the MUDA for the first Chocolate Fish Coffee store?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, for the first store, the Franchise Agreement is executed simultaneously with the Multi-Unit Development Agreement (MUDA). This means that when a franchisee signs the MUDA to develop multiple Chocolate Fish Coffee locations, they also sign the Franchise Agreement for their first specific location at the same time.

This simultaneous execution is significant because the MUDA grants the franchisee the right to develop multiple Chocolate Fish Coffee businesses within a defined area, but it does not, by itself, authorize the franchisee to open or operate any Chocolate Fish Coffee business. The Franchise Agreement is what allows the franchisee to actually establish and run their first Chocolate Fish Coffee store. The MUDA outlines the development schedule and territory, while the Franchise Agreement details the terms and conditions for operating a single Chocolate Fish Coffee franchise.

For each additional Chocolate Fish Coffee franchise beyond the first, the franchisee will execute Chocolate Fish Coffee's current standard form of franchise agreement, but not simultaneously with the MUDA. This subsequent agreement must be signed no later than three business days after the franchisee leases or acquires a location. This ensures that each Chocolate Fish Coffee location operated under the MUDA is governed by a separate franchise agreement.