For a Chocolate Fish Coffee franchise, is the franchise granted for a specific location?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
12 TERRITORY**
Your Location
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject to our approval.
Grant of Territory
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).
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Chocolate Fish Coffee business, (3) you must be in compliance with all brand requirements at your open Chocolate Fish Coffee business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the franchise is granted for a specific location. The franchise agreement specifies a territory, determined by Chocolate Fish Coffee, which typically has a population of approximately 40,000 people. This territory is usually defined as a radius around the franchisee's location, although Chocolate Fish Coffee may use other boundaries such as county lines, political boundaries, streets, geographical features, or trade areas. The Location Acceptance Letter will state the territory.
As a Chocolate Fish Coffee franchisee, you do not have the right to relocate your business, and Chocolate Fish Coffee is under no obligation to approve any relocation request. However, Chocolate Fish Coffee's policy is to consider relocation requests on a case-by-case basis, taking into account factors like changes in demographics, the profitability of the current business, or loss of premises due to circumstances beyond the franchisee's control.
Furthermore, franchisees do not have the right to establish additional franchised outlets unless they sign a Multi-Unit Development Agreement (MUDA) with Chocolate Fish Coffee. If a MUDA is in place, the franchisee has the right to establish a mutually agreed-upon number of additional outlets on a mutually agreed-upon schedule, subject to certain conditions. These conditions include compliance with the development schedule, sufficient financial and organizational capacity, compliance with brand requirements at existing Chocolate Fish Coffee businesses, and not being in default under any other agreement with Chocolate Fish Coffee. Chocolate Fish Coffee will approve the location of future sites and territories, applying their then-current standards for sites and territories. Franchisees are not obligated to develop additional outlets under the MUDA and may terminate it at any time without penalty. However, Chocolate Fish Coffee has the right to terminate the franchisee's right to develop additional outlets if the development schedule in the MUDA is not met.