Where can I find the Multi-Unit Development Agreement for Chocolate Fish Coffee?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement, which outlines the terms for developing multiple Chocolate Fish Coffee outlets, is included as Exhibit C to the disclosure document. This agreement is relevant if a franchisee is interested in opening more than one Chocolate Fish Coffee location.

The Multi-Unit Development Agreement (MUDA) specifies the development schedule that the franchisee must adhere to. It also states that for each additional Chocolate Fish Coffee franchise, the franchisee will need to execute Chocolate Fish Coffee's current standard form of franchise agreement, typically within three business days after securing a location. The initial franchise fee paid upon execution of the MUDA is non-refundable.

The MUDA does not automatically grant the right to open a Chocolate Fish Coffee business; a separate franchise agreement is required for each location. The franchisee must locate each new Chocolate Fish Coffee business within a defined development area and, while the MUDA is active, they generally have exclusive rights to develop Chocolate Fish Coffee businesses within that area. Chocolate Fish Coffee can terminate the MUDA if the franchisee fails to meet the development schedule or defaults on any franchise agreement. However, the franchisee can also terminate the MUDA at any time without penalty, and their commitment is treated as an option, limiting liability for lost future revenues if the agreement is terminated.