How does Chocolate Fish Coffee determine the territory granted to a franchisee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 40,000 people. Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area).
Grant of Territory
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
6.1 Determining Location and Territory.
- (ii) When Chocolate Fish Franchising accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Chocolate Fish Franchising shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Chocolate Fish Franchising fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and those zip codes which immediately surround the location of the franchised business and together comprise a total of 40,000 population.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchise agreement will specify a territory determined by the franchisor. This territory typically encompasses a population of approximately 40,000 people. The territory is usually defined as a radius around the franchisee's location, but Chocolate Fish Coffee may use other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas to delineate the territory.
If the specific location is not known when the franchise agreement is signed, the location is subject to Chocolate Fish Coffee's approval. After Chocolate Fish Coffee accepts the franchisee's proposed location, it will issue a Location Acceptance Letter that states the location and territory. Chocolate Fish Coffee determines the territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Chocolate Fish Coffee fails to state the territory in writing within 60 days after the franchisee opens the business to the public, the territory will be deemed to be the zip code which includes the location of the franchised business and those zip codes which immediately surround the location of the franchised business and together comprise a total of 40,000 population.
Chocolate Fish Coffee grants a protected territory in the franchise agreement, where it will not establish another company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee outlet. The continuation of territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency, and there are no circumstances that permit Chocolate Fish Coffee to modify the territorial rights. However, there are no restrictions on Chocolate Fish Coffee from soliciting or accepting orders from consumers inside the franchisee's territory, and Chocolate Fish Coffee reserves the right to use other channels of distribution, such as the internet, to make sales within the territory without compensating the franchisee.