Does Chocolate Fish Coffee have any other business activities besides franchising?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not operate businesses of the type being franchised, but our Affiliate company does.
We do not have any other business activities. We have not offered franchises in other lines of business.
We do sell coffee products, branded merchandise and supplies directly to franchise and company owned locations.
Our Affiliate, NZUS, Corp was incorporated on 7/16/2007 and is located at 4749 Folsom Blvd, Sacramento, CA 95819. We purchased this entity and the operating businesses on 7/27/2023. This corporation owns and operates three company owned locations of the Chocolate Fish Coffee business model located at the following addresses:
25055 Blue Ravine Rd, Folsom CA Opened - 2020
2940 Freeport Blvd, Sacramento, CA Opened - 2018
4749 Folsom Blvd Sacramento, CA Opened – 2014
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Franchising, LLC does not engage in any other business activities besides franchising. However, Chocolate Fish Coffee's affiliate company does operate businesses of the type being franchised. Specifically, the FDD states that Chocolate Fish Coffee does sell coffee products, branded merchandise, and supplies directly to both franchise and company-owned locations.
NZUS, Corp, an affiliate of Chocolate Fish Coffee, owns and operates three company-owned Chocolate Fish Coffee locations. These locations are at 25055 Blue Ravine Rd, Folsom CA (opened 2020), 2940 Freeport Blvd, Sacramento, CA (opened 2018), and 4749 Folsom Blvd Sacramento, CA (opened 2014). Chocolate Fish Coffee purchased NZUS, Corp and its operating businesses on July 27, 2023.
This arrangement, where the franchisor's affiliate operates company-owned stores, is relatively common in franchising. It allows the franchisor to test new products or operational strategies in a real-world setting before rolling them out to the franchise network. It also provides franchisees with the assurance that the franchisor has a vested interest in the success of the brand, as they also profit from company-owned locations.