factual

Where can I find the requirements for a Chocolate Fish Coffee franchisee to renew or extend their franchise?

Chocolate_Fish_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

ARTICLE 3. TERM

  • 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
  • 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into an unlimited number of successor agreements subject to the following conditions prior to each expiration:
    • (i) Franchisee notifies Chocolate Fish Franchising of the election to renew between 90 and 180 days prior to the end of the term;
    • (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Chocolate Fish Franchising (or any of its affiliates) at the time of election and at the time of renewal;
    • (iii) Franchisee has made or agrees to make (within a period of time acceptable to Chocolate Fish Franchising) renovations and changes to the Business as Chocolate Fish Franchising requires (including a Remodel, if applicable) to conform to the then-current System Standards;
    • (iv) Franchisee and its Owners execute Chocolate Fish Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
    • (v) Franchisee and each Owner executes a general release (on Chocolate Fish Franchising's then-standard form) of any and all claims against Chocolate Fish Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.

Source: Item 23 — RECEIPTS (FDD pages 41–119)

What This Means (2024 FDD)

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Article 3.2 outlines the conditions for a franchisee to enter into successor agreements upon the expiration of their current agreement. The initial franchise agreement term is 10 years. A franchisee can pursue an unlimited number of successor agreements.

To renew, the franchisee must notify Chocolate Fish Coffee of their election to renew between 90 and 180 days before the end of the current term. Both the franchisee and its affiliates must be in full compliance with the existing agreement and all other agreements with Chocolate Fish Coffee at the time of election and renewal.

The franchisee must also make or agree to make renovations and changes to the business as required by Chocolate Fish Coffee to meet the then-current System Standards, including a remodel if applicable. Additionally, the franchisee and each owner must execute Chocolate Fish Coffee's current standard franchise agreement and related documents, which may differ materially from the original agreement and may include higher or different fees. However, the franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this section. Finally, the franchisee and each owner must execute a general release of any and all claims against Chocolate Fish Coffee and its affiliates.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.