What is the Chocolate Fish Coffee franchisee's obligation regarding compliance with Section 11.2?
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 A
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Section 11.2 outlines the franchisee's responsibility to 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 inventory, evaluating conditions, monitoring sales, speaking with employees and customers, and removing product samples.
Chocolate Fish Coffee is also permitted to videotape and/or take photographs of the business during the inspection. Furthermore, Chocolate Fish Coffee may establish a minimum score requirement for these inspections.
Failure to meet or exceed the minimum score can result in a default under the Franchise Agreement. This means that a prospective Chocolate Fish Coffee franchisee must be prepared to allow inspections and maintain standards that meet Chocolate Fish Coffee's requirements to avoid being in default of their agreement.