Is a Chocolate Fish Coffee franchisee required to personally conduct 'on-premises' supervision of their business?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- 7.6 Post-Opening Training. Chocolate Fish Franchising may at any time require that the Principal Executive and/or any other employees complete training programs, in any format and in any location determined by Chocolate Fish Franchising. Chocolate Fish Franchising may charge a reasonable fee for any training programs. Chocolate Fish Franchising may require Franchisee to provide training programs to its employees. If a training program is held at a location which requires travel by the Principal Executive or any other employee, then Franchisee shall pay all travel, living and other expenses.
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 under the on-site supervision of either the Principal Executive or a general manager who has completed Chocolate Fish Coffee's training program. The Principal Executive is the person designated on the Summary Page as primarily responsible for the business, possessing decision-making authority on behalf of the franchisee.
While the Principal Executive doesn't have to be the day-to-day general manager, they must devote substantial time and attention to the Chocolate Fish Coffee business. This implies that the franchisee, through its Principal Executive, needs to be actively involved in the oversight, even if daily operations are delegated to a trained general manager.
This requirement ensures that someone with a vested interest and decision-making power is consistently monitoring the business. It also guarantees that the Chocolate Fish Coffee standards are maintained, whether through the Principal Executive or a trained general manager. This is a fairly standard practice in franchising, as franchisors want to ensure brand consistency and operational quality across all locations.