What is a Chocolate Fish Coffee franchisee's obligation during an inspection?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 Inspections. 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, franchisees must cooperate with Chocolate Fish Coffee's inspectors during inspections of the business premises. These inspections, which occur during normal business hours, may involve observing operations, conducting physical inventory, evaluating the physical condition of the premises, 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 during the inspection.
Chocolate Fish Coffee may set a minimum score requirement for inspections, and failure to meet or exceed this minimum score constitutes a default under the Franchise Agreement. Franchisees are required to correct any deficiencies noted during an inspection as soon as reasonably practical.
If an inspection is conducted due to a governmental report, customer complaint, or the franchisee's non-compliance with System Standards (including a follow-up to a previous failed inspection), Chocolate Fish Coffee may charge the franchisee for all out-of-pocket expenses, plus its then-current inspection fee. This highlights the importance of maintaining standards and addressing issues promptly to avoid additional costs and potential default.