Is a buyer of a Chocolate Fish Coffee franchise required to complete a training program?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| k. “Transfer” by | FA: Article 1 | For you (or any owner of your business) to |
| franchisee - defined | ||
| MUDA: Background | voluntarily or involuntarily transfer, sell, or | |
| Statement | dispose of, in any single or series of transactions, (i) substantially all of the assets of the business, (ii) the franchise agreement, (iii) any direct or indirect ownership interest in the business, or (iv) control of the business. | |
| l. Franchisor’s approval of | FA: § 15.2 | No transfers without our approval. No transfers without our approval. |
| transfer by franchisee | MUDA: § 7 | |
| m. Conditions for | FA: § 15.2 | Pay transfer fee; buyer meets our standards; |
| franchisor’s approval of | ||
| transfer | ||
| MUDA: none | buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; |
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, a buyer of an existing franchise must complete a training program to be approved as a franchisee. Specifically, this requirement is triggered when a franchisee seeks to transfer their franchise to a new owner.
Chocolate Fish Coffee mandates that the buyer meets their standards and is not a competitor. The buyer must also sign the then-current franchise agreement and related documents, including a personal guaranty. The original franchisee must have made all payments and be in compliance with all contractual requirements. The business must also comply with the then-current system specifications, which may include remodeling.
This condition ensures that new Chocolate Fish Coffee franchisees are adequately prepared to operate the business according to the franchisor's standards. It also protects the brand's reputation and consistency across all locations. For a prospective franchisee looking to buy an existing Chocolate Fish Coffee location, it is essential to factor in the time and potential costs associated with completing the required training program.