Can Chocolate Fish Coffee delegate its obligations under the agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.8 Delegation. Chocolate Fish Franchising may delegate any duty or obligation of Chocolate Fish Franchising under this Agreement to an affiliate or to a third party.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Chocolate Fish Coffee has the right to delegate its duties and obligations under the Franchise Agreement. Specifically, Chocolate Fish Franchising can delegate these responsibilities to an affiliate or a third party.
This clause means that a franchisee may have to deal with a different entity than Chocolate Fish Coffee itself for certain aspects of the franchise agreement. This could include support services, supply chain management, or other operational obligations.
While this delegation is permissible, the FDD does not specify the process or criteria Chocolate Fish Coffee will use to select these affiliates or third parties. As such, a prospective franchisee should inquire about the standards Chocolate Fish Coffee uses when delegating its responsibilities and what recourse a franchisee has if they are unsatisfied with the performance of the delegated party.