How does Chocolate Fish Coffee collect payments for third-party vendors?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 6% of your gross | Weekly, on | See Note 1 and Note 2. | |
| sales | Wednesday | ||
| 1% of your gross | See Item 11 for a detailed discussion | ||
| sales | about these funds. Amounts due will be | ||
| withdrawn by electronic wire transfer | |||
| from your designated bank account. | |||
| If you send a manager or other employee | |||
| to our training program after you open, we | |||
| will charge our then-current training fee. | |||
| We have the right to require franchisees to | |||
| use third-party vendors and suppliers that | |||
| we designate. Examples can include | |||
| computer support vendors, mystery | |||
| shopping, and customer feedback systems. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Coffee has the right to require franchisees to use designated third-party vendors and suppliers, which may include computer support vendors, mystery shopping services, and customer feedback systems.
There are two options for how these vendors get paid. The vendors and suppliers may bill Chocolate Fish Coffee franchisees directly. Alternatively, Chocolate Fish Coffee has the right to collect payments for these vendors. If Chocolate Fish Coffee collects the payments, they may include a reasonable markup or charge for administering the payment program.
It is important for a prospective franchisee to understand which vendors they will be required to use, how those vendors will bill for their services, and whether Chocolate Fish Coffee will add a markup to those vendor costs. This information will help a franchisee budget appropriately and understand the full cost of operating a Chocolate Fish Coffee franchise.