Does Chocolate Fish Coffee generally own the premises of its franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your business:
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page).
We do not select your site.
Your site is subject to our approval.
To obtain our approval, you must provide all information and documents about the site that we require.
(iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
(iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1).
If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement.
Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
- (v) We are not obligated to assist you in conforming the premises of your site to local ordinances and building codes and obtaining any required permits.
This will be your responsibility.
- B. Constructing, remodeling, or decorating the premises.
We will provide you with a set of our standard building plans and specifications and/or standard recommended floor plans, and our specifications for required décor. (Section 5.4)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Coffee generally does not own the premises of its franchisees. The FDD states that Chocolate Fish Coffee will review and advise franchisees regarding potential locations that they submit. If a franchisee signs a Multi-Unit Development Agreement, Chocolate Fish Coffee will approve the location of future sites and territories for those sites, and their then-current standards for sites and territories will apply. However, Chocolate Fish Coffee is not obligated to further assist franchisees in locating a site or negotiating the purchase or lease of the site.
Furthermore, the FDD clarifies that Chocolate Fish Coffee does not select the site for the franchisee, but the site is subject to Chocolate Fish Coffee's approval. To obtain approval, franchisees must provide all required information and documents about the site. Chocolate Fish Coffee considers factors such as general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms when approving sites.
The time limit for Chocolate Fish Coffee to approve or disapprove a proposed site is 30 days after the franchisee submits all required documents and information. If Chocolate Fish Coffee and the franchisee cannot agree on a site, the franchisee will be unable to comply with their obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless Chocolate Fish Coffee agrees to extend the deadline, the franchisee will be in default, and Chocolate Fish Coffee may terminate the franchise agreement. The franchisee is responsible for conforming the premises of their site to local ordinances and building codes and obtaining any required permits. Chocolate Fish Coffee will provide a set of standard building plans and specifications and/or standard recommended floor plans, and specifications for required décor.