What documents related to legal actions does Chocolate Fish Coffee require franchisees to provide?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
10.2 Reports.
- (b) Legal Actions and Investigations. Franchisee shall promptly notify Chocolate Fish Franchising of any Action or threatened Action by any customer, governmental authority, or other third party against Franchisee or the Business, or otherwise involving the Franchisee or the Business. Franchisee shall provide such documents and information related to any such Action as Chocolate Fish Franchising may request.
- (c) Government Inspections. Franchisee shall give Chocolate Fish Franchising copies of all inspection reports, warnings, certificates, and ratings issued by any governmental entity with respect to the Business, within three days of Franchisee's receipt thereof.
- (d) Other Information. Franchisee shall submit to Chocolate Fish Franchising such other financial statements, budgets, forecasts, reports, records, copies of contracts, documents related to litigation, tax returns, copies of governmental permits, and other documents and information related to the Business as specified in the Manual or that Chocolate Fish Franchising may reasonably request.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are required to promptly notify Chocolate Fish Coffee of any action or threatened action by a customer, governmental authority, or other third party against the franchisee or the business. This includes any situation involving the franchisee or the business.
Chocolate Fish Coffee also requires franchisees to provide documents and information related to any such action as Chocolate Fish Coffee may request. This broad requirement ensures that Chocolate Fish Coffee is kept fully informed of any legal issues that could affect the brand or the franchise system.
In addition to legal actions, franchisees must submit copies of all inspection reports, warnings, certificates, and ratings issued by any governmental entity within three days of receipt. Franchisees are also obligated to submit other documents related to litigation as Chocolate Fish Coffee may reasonably request, ensuring transparency and compliance with legal and regulatory matters.