What constitutes a violation of the Chocolate Fish Coffee agreement that, by its nature, cannot be cured?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
person, and Franchisee fails to cure such danger within 48 hours after becoming aware of the danger (due to notice from Chocolate Fish Franchising or otherwise);
(xi) Franchisee has received two or more notices of default and Franchisee commits another breach of this Agreement, all in the same 12-month period;
(xii) Chocolate Fish Franchising (or any affiliate) terminates any other agreement with Franchisee (or any affiliate) due to the breach of such other agreement by Franchisee (or its affiliate) (provided that termination of a Multi-Unit Development Agreement with Franchisee or its affiliate shall not give Chocolate Fish Franchising the right to terminate this Agreement);
(xiii) Franchisee or any Owner is charged with, pleads guilty or no-contest to, or is convicted of a felony; or
(xiv) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in Chocolate Fish Franchising's opinion is reasonably likely to materially and unfavorably affect the Chocolate Fish Coffee brand.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, certain violations of the franchise agreement automatically result in termination without an opportunity to correct the issue. These include situations that pose an immediate danger if not resolved within 48 hours of awareness, multiple breaches within a year, termination of another agreement with Chocolate Fish Coffee, felony charges or convictions, or actions that could negatively impact the Chocolate Fish Coffee brand.
Specifically, if a Chocolate Fish Coffee franchisee is aware of a dangerous situation and fails to address it within 48 hours after receiving notice from Chocolate Fish Coffee, this constitutes a non-curable breach. Similarly, if a franchisee receives two or more default notices and then commits another breach within a 12-month period, Chocolate Fish Coffee can terminate the agreement without allowing the franchisee to fix the problem. The termination of any other agreement between the franchisee (or an affiliate) and Chocolate Fish Coffee (or an affiliate) due to a breach also leads to immediate termination of the franchise agreement.
Furthermore, any felony charges, guilty pleas, or convictions involving the franchisee or any owner can result in immediate termination. Finally, if the franchisee or any owner is accused of any act by a governmental authority or third party, or commits any act, that Chocolate Fish Coffee believes is reasonably likely to materially and unfavorably affect the Chocolate Fish Coffee brand, the agreement can be terminated without an opportunity to cure the violation. These stipulations highlight the importance of maintaining legal and ethical conduct, as well as adhering to all contractual obligations with Chocolate Fish Coffee, to avoid immediate termination of the franchise agreement.