To what extent does Chocolate Fish Coffee have the right to determine prices charged by franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- D. Establishing prices. We will provide recommended prices for products and services. (Section 5.5). We have the right to determine prices charged by our franchisees for goods and services (but only to the extent permitted by applicable law).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Coffee will provide recommended prices for products and services. However, Chocolate Fish Coffee retains the right to determine the prices franchisees charge for goods and services, but only to the extent permitted by applicable law.
This means that while Chocolate Fish Coffee offers pricing guidance, they also maintain the authority to set mandatory prices for franchisees, provided that such control is legally permissible. This could be influenced by state or federal laws related to antitrust or fair trade practices.
For a prospective franchisee, this implies that while they may have some input or flexibility in pricing, Chocolate Fish Coffee ultimately has the power to dictate pricing strategies. It is important for a prospective franchisee to understand the legal limitations on Chocolate Fish Coffee's pricing control within their specific jurisdiction and how this could impact their profitability and business operations.