As a Chocolate Fish Coffee franchisee, am I required to sign a Franchise Agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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If you sign a franchise agreement with us, you will develop and operate a specialty coffee shop featuring a hybrid business model which continues the imaginative and inventive business practices of our brand offering caffeinated beverages, combining the highest quality drinks with a simple food menu and unrivaled customer service, under the trade name Chocolate Fish Coffee. If you sign a Multi-Unit Development Agreement (attached as Exhibit C to this disclosure document), you will develop multiple Chocolate Fish Coffee outlets, on an agreed-upon schedule.
For each future unit franchise, we will require you to sign our then-current form of franchise agreement, which may be different from the form of franchise agreement included in this disclosure document.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, if you become a franchisee, you will be required to sign a Franchise Agreement. The document states, "If you sign a franchise agreement with us, you will develop and operate a specialty coffee shop...under the trade name Chocolate Fish Coffee." This agreement allows you to operate a Chocolate Fish Coffee shop. Additionally, if you plan to develop multiple Chocolate Fish Coffee outlets, you will need to sign a Multi-Unit Development Agreement (MUDA). For each additional franchise unit, you will be required to sign the current form of the franchise agreement, which may differ from the one initially provided in the disclosure document.
The Franchise Agreement outlines the terms and conditions under which Chocolate Fish Franchising licenses its marks and system to you for operating a Chocolate Fish Coffee business. This includes the methods, procedures, and standards for running the coffee shop, as well as the use of Chocolate Fish Coffee's plans, specifications, equipment, signage, and trade dress. The agreement also covers particular products and services, training programs, business knowledge, and marketing plans.
The Franchise Agreement also specifies a territory for your franchise, which Chocolate Fish Coffee will determine. This territory will typically have a population of approximately 40,000 people and is usually defined as a radius around your location. However, Chocolate Fish Coffee may use other boundaries such as county lines, political boundaries, streets, or geographical features. You are required to operate your Chocolate Fish Coffee business at the designated location for the entire term of the agreement.