Who is considered an 'Owner' of a Chocolate Fish Coffee franchise?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, an 'Owner' is defined as any person or entity that directly or indirectly owns or controls any equity of the franchisee. If the franchisee is an individual person, then the franchisee is considered the 'Owner'.

This definition is important because the FDD specifies certain obligations and restrictions that apply not only to the franchisee but also to the 'Owners'. For example, 'Owners' may be required to sign a personal guaranty, ensuring they are personally liable for the franchisee's obligations to Chocolate Fish Coffee. Additionally, 'Owners' are subject to non-compete agreements, restricting their involvement with competing businesses during and after the franchise term.

Prospective franchisees should carefully consider this definition and its implications, especially if the franchise will be owned by a corporate entity or involve multiple investors. It is crucial to understand who qualifies as an 'Owner' and what responsibilities and restrictions will apply to them. Franchisees should consult with legal and financial advisors to fully assess the impact of these provisions on their specific circumstances.