What constitutes 'satisfaction' for Chocolate Fish Coffee regarding the cure of a breach?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee breaches this Agreement in any manner not described in subsection (a) or (c), and Franchisee fails to cure such breach to Chocolate Fish Franchising's satisfaction within 30 days after Chocolate Fish Franchising gives notice to Franchisee of such breach, then Chocolate Fish Franchising may terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, if a franchisee breaches the agreement in a way not specifically related to non-payment or situations allowing termination without a cure period, the franchisee has 30 days to resolve the issue. The breach must be cured to Chocolate Fish Coffee's satisfaction.
This means that Chocolate Fish Coffee has the discretion to determine whether the franchisee has adequately fixed the problem. This is important for prospective franchisees because it introduces a subjective element into the cure process. Even if the franchisee believes they have corrected the breach, Chocolate Fish Coffee could disagree, leading to potential termination of the agreement.
This clause gives Chocolate Fish Coffee significant power in enforcing the franchise agreement, as they ultimately decide if a breach has been adequately resolved. A prospective franchisee should seek clarity from Chocolate Fish Coffee on what specific actions or outcomes would be considered satisfactory in curing different types of breaches to mitigate potential disputes.