What is the due date for the fee associated with selling my Chocolate Fish Coffee business?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $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 you sell your Chocolate Fish Coffee business, you will be required to pay a fee. The fee includes $10,000, in addition to any broker fees and other out-of-pocket costs that Chocolate Fish Coffee incurs. The FDD does not specify the due date for this fee.
In addition to the $10,000 plus broker fees, Chocolate Fish Coffee requires payment of 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. The due date for this amount is also not specified in the FDD.
Because the due date for the fee associated with selling your Chocolate Fish Coffee business is not listed in the FDD, it is important that you contact the franchisor directly to obtain clarification on when this fee is due.