What is the Chocolate Fish Coffee franchisee's obligation to comply with System Standards?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.1 Compliance with Manual and System Standards. Franchisee shall at all times and at its own expense comply with all mandatory obligations contained in the Manual and with all other System Standards.
"System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by Chocolate Fish Franchising, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating days, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
Chocolate Fish Franchising may vary or waive any System Standard for any one or more Chocolate Fish Coffee franchises due to the peculiarities of the particular site or circumstances, density of population, business potential, population of trade area, existing business practices, applicable laws or regulations, or any other condition relevant to the performance of a franchise or group of franchises.
Franchisee is not entitled to the same variation or waiver.
Franchisee shall use all Marks specified by Chocolate Fish Franchising, and only in the manner as Chocolate Fish Franchising may require.
Chocolate Fish Franchising may add, modify, or discontinue any Marks to be used under the System. Within a reasonable time after Chocolate Fish Franchising makes any such change, Franchisee must comply with the change, at Franchisee's expense.
Franchisee shall acquire all Inputs required by Chocolate Fish Franchising from time to time in accordance with System Standards. Chocolate Fish Franchising may require Franchisee to purchase or lease any Inputs from Chocolate Fish Franchising, Chocolate Fish Franchising's designee, Required Vendors, Approved Vendors, and/or under Chocolate Fish Franchising's specifications. Chocolate Fish Franchising may change any such requirement or change the status of any vendor. To make such requirement or change effective, Chocolate Fish Franchising shall issue the appropriate System Standards.
If Chocolate Fish Franchising requires Franchisee to purchase a particular Input only from an Approved Vendor or Required Vendor, and Franchisee desires to purchase the Input from another vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Chocolate Fish Franchising.
Chocolate Fish Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees must comply with all mandatory obligations outlined in the Manual and all other System Standards at their own expense, at all times. System Standards encompass the mandatory procedures, requirements, and standards determined by Chocolate Fish Coffee, covering aspects such as appearance, business metrics, cleanliness, customer service, design, equipment, inventory, marketing, operating days and hours, presentation of Marks, product and service offerings, quality, reporting, safety, and technology. These standards also extend to uniforms and vehicles. Chocolate Fish Coffee can modify these standards, and franchisees must adapt to these changes at their own expense within a reasonable timeframe.
Chocolate Fish Coffee retains the discretion to vary or waive any System Standard for individual franchises due to specific site conditions, population density, business potential, trade area demographics, existing business practices, laws, or other relevant factors. However, a franchisee is not automatically entitled to the same variation or waiver granted to another franchisee. Franchisees are also obligated to use only the trademarks, service marks, and logos (the Marks) specified by Chocolate Fish Coffee and in the manner required by Chocolate Fish Coffee.
To ensure brand consistency and quality, Chocolate Fish Coffee requires franchisees to acquire all necessary inputs, which include supplies and services, in accordance with System Standards. Franchisees may be required to purchase or lease inputs from Chocolate Fish Coffee, its designees, or approved vendors. If a franchisee wishes to use an alternate vendor or input, they must seek written approval from Chocolate Fish Coffee, which may be subject to evaluations of the vendor's capacity, quality, financial stability, and other criteria. Chocolate Fish Coffee will provide written notification of approval or disapproval within 30 days of the franchisee's request.