Can Chocolate Fish Franchising modify the Manual?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ion or audit if (i) Chocolate Fish Franchising conducted the audit because Franchisee failed to submit required reports or was otherwise not in compliance with the System, or (ii) the audit reveals that Franchisee understated Gross Sales by 3% or more for any 4-week period.
ARTICLE 11. FRANCHISOR RIGHTS
- 11.1 Manual; Modification. The Manual, and any part of the Manual, may be in any form or media determined by Chocolate Fish Franchising. Chocolate Fish Franchising may supplement, revise, or modify the Manual, and Chocolate Fish Franchising may change, add or delete System Standards at any time in its discretion. Chocolate Fish Franchising may inform Franchisee thereof by any method that Chocolate Fish Franchising deems appropriate (which need not qualify as "notice" under Section 18.9). In the event of any dispute as to the contents of the Manual, Chocolate Fish Franchising's master copy will control.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Franchising has the right to modify the Manual. Specifically, Chocolate Fish Franchising can supplement, revise, or modify the Manual, and change, add, or delete System Standards at any time, using any method they deem appropriate to inform the franchisee of these changes. This notification method does not need to qualify as formal "notice" as defined elsewhere in the agreement. In the event of a dispute about the Manual's contents, Chocolate Fish Franchising's master copy will be the controlling document.
This clause grants Chocolate Fish Franchising broad authority to update operational guidelines and standards. For a prospective franchisee, this means the rules and procedures for running the Chocolate Fish Coffee business can change, potentially impacting day-to-day operations, costs, and compliance requirements. Franchisees must stay informed of these changes and adapt their business practices accordingly.
While Chocolate Fish Franchising has the right to modify the Manual and System Standards, the franchise agreement itself can only be modified through a written agreement signed by both parties. This ensures that fundamental contractual terms are not unilaterally changed by the franchisor. However, franchisees should be aware that the Manual and System Standards cover a wide range of operational aspects, giving Chocolate Fish Franchising considerable flexibility in directing the business model.