What conditions might Chocolate Fish Coffee require a franchisee to meet for franchise renewal?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 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 may be able to enter into a successor agreement when their initial franchise term expires, provided they meet certain conditions. The franchisee must notify Chocolate Fish Coffee of their election to renew the agreement between 90 and 180 days prior to the end of the current term. At both the time of election and the time of renewal, the franchisee and their affiliates must be in compliance with the existing Franchise Agreement and all other agreements with Chocolate Fish Coffee or its affiliates.
Chocolate Fish Coffee may also require franchisees to make renovations and changes to the business location, including a remodel if applicable, to conform to the then-current System Standards. The franchisee will be responsible for completing these updates within a timeframe that is acceptable to Chocolate Fish Coffee.
Furthermore, the franchisee and each owner must execute Chocolate Fish Coffee's then-current standard form of franchise agreement and related documents, including a personal guaranty. The new agreement may contain terms that are materially different from the original, potentially including higher or different fees. However, the franchisee will not be required to pay another initial franchise fee and will not receive more renewal or successor terms than described in the agreement. Finally, the franchisee and each owner must execute a general release of any and all claims against Chocolate Fish Coffee, its affiliates, and their respective owners, officers, directors, agents, and employees.