factual

For a Chocolate Fish Coffee franchise, is there a limit on who can be hired as an on-premises supervisor?

Chocolate_Fish_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

ate Fish Franchising may include the minimum, maximum, and/or exact prices that franchisees may charge for products or services sold (except to the extent such authority is limited or prohibited by applicable law).

7.5 Personnel.

  • (a) Management. The Business must at all times be under the on-site supervision of the Principal Executive or a general manager who has completed Chocolate Fish Franchising's training program.
  • (b) Service. Franchisee shall cause its personnel to render competent and courteous service to all customers and members of the public.
  • (c) Appearance. Franchisee shall cause its personnel to comply with any dress attire, uniform, personal appearance and hygiene standards set forth in the Manual.
  • (d) Qualifications. Chocolate Fish Franchising may set minimum qualifications for categories of employees employed by Franchisee.
  • (e) Sole Responsibility. Franchisee is solely responsible for the terms and conditions of employment of all of its personnel, including recruiting, hiring, training, scheduling, supervising, compensation, and termination. Franchisee is solely responsible for all actions of its personnel. Franchisee and Chocolate Fish Franchising are not joint employers, and no employee of Franchisee will be an agent or employee of Chocolate Fish Franchising. Within seven days of Chocolate Fish Franchising's request, Franchisee and each of its employees will sign an acknowledgment form stating that Franchisee alone (and not Chocolate Fish Franchising) is the employee's sole employer. Franchisee will use its legal name on all documents with its employees and independent contractors, including, but not limited to, employment applications, time cards, pay checks, and employment and independent contractor agreements, and Franchisee will not use the Marks on any of these documents.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 32)

What This Means (2024 FDD)

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the business must be supervised on-site by either the Principal Executive or a general manager. The general manager must complete Chocolate Fish Coffee's training program. The Principal Executive is the person designated as primarily responsible for the business, with decision-making authority, and must have at least a 10% ownership interest in the franchise. While the Principal Executive does not have to be the day-to-day general manager, they must devote substantial time and attention to the business.

Chocolate Fish Coffee may set minimum qualifications for categories of employees. However, the franchisee is ultimately responsible for all employment-related decisions, including recruiting, hiring, training, scheduling, supervising, compensation, and termination. The franchisee is also responsible for the actions of their personnel. Chocolate Fish Coffee and the franchisee are not considered joint employers, and the franchisee's employees are not agents or employees of Chocolate Fish Coffee.

Prospective franchisees should note that Chocolate Fish Coffee retains the right to require the Principal Executive or any other employees to complete further training programs at any time, potentially incurring additional fees and travel expenses. Franchisees must also ensure their personnel comply with any dress attire, uniform, personal appearance, and hygiene standards outlined in the manual. These stipulations ensure that Chocolate Fish Coffee maintains consistent brand standards and service quality across all franchise locations.

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.