Is compliance with agreements with Chocolate Fish Coffee affiliates a condition for renewal?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into an unlimited number of successor agreements subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Chocolate Fish Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Chocolate Fish Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Chocolate Fish Franchising) renovations and changes to the Business as Chocolate Fish Franchising requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Chocolate Fish Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Chocolate Fish Franchising's then-standard form) of any and all claims against Chocolate Fish Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, a franchisee's (and its affiliates) compliance with all agreements with Chocolate Fish Coffee (or any of its affiliates) is a condition for renewal. Specifically, to renew the franchise agreement for an unlimited number of successor agreements, the franchisee must notify Chocolate Fish Coffee of their election to renew between 90 and 180 days prior to the end of the term. At both the time of election and the time of renewal, the franchisee (and its affiliates) must be in compliance with the existing franchise agreement and all other agreements with Chocolate Fish Coffee or its affiliates.
In addition to compliance with all agreements, the franchisee must also make or agree to make renovations and changes to the business as Chocolate Fish Coffee requires to conform to the then-current System Standards. This includes a remodel, if applicable, within a period of time acceptable to Chocolate Fish Coffee. The franchisee and its owners must execute Chocolate Fish Coffee's then-current standard form of franchise agreement and related documents, including a personal guaranty, which may be materially different than the original form, potentially including higher or different fees.
Finally, the franchisee and each owner must execute a general release on Chocolate Fish Coffee's then-standard form, releasing any and all claims against Chocolate Fish Coffee, its affiliates, and their respective owners, officers, directors, agents, and employees. These conditions collectively ensure that the franchisee remains in good standing with Chocolate Fish Coffee and adheres to the evolving standards and requirements of the franchise system.