Will the Chocolate Fish Coffee franchise agreement specify the territory?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 40,000 people. Your territory will usually be specified as a radius around your location; however, we may use other boundaries (such as county lines or other political boundaries, streets, geographical features, or trade area).
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
If you sign a MUDA, you will receive an exclusive territory as an area developer. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee Roasters outlet. The continuation of your territorial exclusivity depend on your adherence to the development schedule states in the MUDA. If you fail to adhere to the
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchise agreement will specify a territory. Chocolate Fish Coffee determines the territory, which typically has a population of approximately 40,000 people. The territory is usually defined as a radius around the franchisee's location, but Chocolate Fish Coffee may use other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas.
Chocolate Fish Coffee grants franchisees a protected territory in the franchise agreement. Within this territory, Chocolate Fish Coffee will not establish company-owned or franchised outlets selling the same or similar goods or services under the same or similar trademarks as a Chocolate Fish Coffee outlet. The continuation of this territorial protection does not depend on achieving certain sales volumes, market penetration, or other contingencies, and there are no circumstances that permit Chocolate Fish Coffee to modify the franchisee's territorial rights.
However, there are no restrictions on Chocolate Fish Coffee from soliciting or accepting orders from consumers inside the franchisee's territory. Chocolate Fish Coffee reserves the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within the territory using their principal trademarks or trademarks different from the ones the franchisee will use under the franchise agreement. The franchisee will not receive any compensation for Chocolate Fish Coffee soliciting or accepting orders from inside their territory.
If a franchisee signs a Multi-Unit Development Agreement (MUDA), they will receive an exclusive territory as an area developer. Within this territory, Chocolate Fish Coffee will not establish company-owned or franchised outlets selling the same or similar goods or services under the same or similar trademarks as a Chocolate Fish Coffee Roasters outlet. The continuation of the territorial exclusivity depends on adherence to the development schedule stated in the MUDA. Failure to adhere to the development schedule gives Chocolate Fish Coffee the right to terminate the MUDA, but not any franchise agreements that are already signed.