What is the due date for the costs associated with Chocolate Fish Coffee curing my non-compliance?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Picture_0.jpeg)
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Our actual cost | On demand | Payable only if (1) we audit you because | |
| you have failed to submit required reports | |||
| or other non-compliance, or (2) the audit | |||
| concludes that you under-reported gross | |||
| sales b | |||
| period | |||
| Payable only if we conduct an inspection | |||
| of your business because of a | |||
| governmental report, customer complaint | |||
| or other customer feedback, or your | |||
| default or non-compliance with any | |||
| system specification. | |||
| We may cure your non-compliance on | |||
| your behalf (for example, if you do not | |||
| have required insurance, we may purchase | |||
| insurance for you), and you will owe our | |||
| costs plus a 10% administrative fee. | |||
| $10,000 plus any | Payable if you sell your business. | ||
| broker fees and other | |||
| out-of-pocket costs | |||
| we incur | |||
| An amount equal to | |||
| royalty fees and | |||
| Brand Fund | |||
| contributions for the | |||
| lesser of (i) 2 years | |||
| or (ii) the remaining | |||
| weeks of the | |||
| franchise term. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, if a franchisee is non-compliant, Chocolate Fish Coffee may address the non-compliance on the franchisee's behalf. For example, Chocolate Fish Coffee might purchase required insurance if the franchisee fails to do so. The franchisee is then responsible for reimbursing Chocolate Fish Coffee for these costs, in addition to a 10% administrative fee. These costs are due 'on demand'.
Additionally, if a Chocolate Fish Coffee franchisee fails to comply with system specifications or the franchise agreement, and does not correct the issue after 30 days' notice, Chocolate Fish Coffee may charge the franchisee $500. Furthermore, the franchisee may be charged $250 per week until the non-compliance is corrected.
If Chocolate Fish Coffee pays any amount that a franchisee owes to a third party, the franchisee must reimburse Chocolate Fish Coffee. This reimbursement, along with the costs and administrative fees associated with curing non-compliance, are due 'on demand'.