What is the approved location for sales for a Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ment, (iii) any direct or indirect ownership interest in the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Chocolate Fish Franchising grants to Franchisee the right to operate a Chocolate Fish Coffee business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Chocolate Fish Coffee business at the Location for the entire term of this Agreement.
- 2.2 Protected Territory. Chocolate Fish Franchising shall not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee business. Chocolate Fish Franchising retains the right to:
- (i) establish and license others to establish and operate Chocolate Fish Coffee businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 32–33)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee FDD, the franchise is granted the right to operate a Chocolate Fish Coffee business solely at the Location. The FDD states that if the specific location is not known when the franchise agreement is signed, the parties will determine the location according to Section 6.1. The franchisee is expected to develop, open, and operate the Chocolate Fish Coffee business at the agreed-upon location for the entire term of the agreement. Chocolate Fish Coffee also provides its criteria for locations and will advise franchisees regarding potential locations they submit.
Item 12 of the FDD further clarifies that the franchise is for a specific location, which is subject to Chocolate Fish Coffee's approval if not known at the time of signing the franchise agreement. The franchise agreement will specify a territory, typically determined by Chocolate Fish Coffee, with an approximate population of 40,000 people. This territory is usually defined as a radius around the franchisee's location, although Chocolate Fish Coffee may use other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas.
The franchisee does not have the right to relocate the business, and Chocolate Fish Coffee has no obligation to approve any relocation request. Relocation is considered on a case-by-case basis, taking into account factors like changes in demographics, the profitability of the current business, or loss of premises due to circumstances beyond the franchisee's control. The franchisee is also restricted from engaging in any business or activity at the location other than the operation of the Chocolate Fish Coffee business, and they cannot use business assets for purposes other than the business itself.