Is the business location for a Chocolate Fish Coffee franchise subject to approval by the franchisor?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The following are our current specific obligations for purchases and leases:
- A. Real Estate. Your business location is subject to our approval and must meet our specifications. You must use reasonable efforts to have your landlord sign our form of Rider to Lease Agreement (attached to this disclosure document as Exhibit D).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–18)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the business location for a Chocolate Fish Coffee franchise is subject to approval by the franchisor. The FDD specifies that the location must meet Chocolate Fish Coffee's standards. Furthermore, Chocolate Fish Coffee requires franchisees to make reasonable efforts to have their landlord sign Chocolate Fish Coffee's standard Rider to Lease Agreement, which is included as an exhibit in the disclosure document.
This requirement means that prospective Chocolate Fish Coffee franchisees cannot simply choose any location they prefer. Chocolate Fish Coffee has the right to veto a location if it does not meet their criteria. This is a fairly standard practice in franchising, as the location can significantly impact the success of the business and the brand's image. The Rider to Lease Agreement likely contains terms that protect Chocolate Fish Coffee's interests, such as signage rights or restrictions on competing businesses in the same property.
For a prospective franchisee, this means they will need to work closely with Chocolate Fish Coffee to identify and secure an appropriate location. They should understand Chocolate Fish Coffee's location criteria and factor in the time and effort required to negotiate a lease that is acceptable to both Chocolate Fish Coffee and the landlord. Reviewing the Rider to Lease Agreement (Exhibit D) is crucial to understanding the obligations and restrictions it imposes on the landlord and, by extension, on the franchisee's business operations.