What is a Chocolate Fish Coffee franchisee required to do if deficiencies are noted during an inspection?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Chocolate Fish Franchising may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Chocolate Fish Franchising's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Chocolate Fish Franchising may videotape and/or take photographs of the inspection and the Business. Chocolate Fish Franchising may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Chocolate Fish Franchising's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Chocolate Fish Franchising conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Chocolate Fish Franchising may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, a franchisee is required to correct any deficiencies noted during an inspection as soon as reasonably practical. Chocolate Fish Coffee may conduct inspections of the premises during normal business hours, which may include observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Chocolate Fish Coffee is also permitted to videotape and/or take photographs of the inspection and the business.
Chocolate Fish Coffee may set a minimum score requirement for inspections, and failure to meet or exceed this score will be considered a default under the Franchise Agreement. If an inspection is conducted due to a governmental report, customer complaint, or a default or non-compliance with System Standards by the franchisee, Chocolate Fish Coffee may charge the franchisee for all out-of-pocket expenses plus its then-current inspection fee.
This means that franchisees must maintain their Chocolate Fish Coffee location to the standards set by the franchisor, and address any issues identified during inspections promptly to avoid further penalties or potential default. The franchisee is responsible for the costs associated with rectifying any deficiencies, and may also be responsible for covering the costs of the inspection under certain circumstances. This highlights the importance of adhering to Chocolate Fish Coffee's System Standards and maintaining a high level of operational compliance.