Does Chocolate Fish Coffee grant a protected territory in the franchise agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
chises.
Territory Protection
In your franchise agreement, we grant you a protected territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
If you sign a MUDA, you will receive an exclusive territory as an area developer. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee Roasters outlet. The continuation of your territorial exclusivity depend on your adherence to the development schedule states in the MUDA. If you fail to adhere to the
development schedule, we will have the right to terminate your MUDA, but not any franchise agreements that are already signed.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Soliciting by You Outside Your Territory
There are no restrictions on you from soliciting or accepting orders from consumers outside of your territory, except that all marketing and advertising is subject to our approval.
Competition by Us Under Different Trademarks
Neither we nor any of our affiliates operates, franchises, or has plans to operate or franchise a business under a different trademark selling goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Item 13 TRADEMARKS
Principal Trademark
The following are the principal trademarks that we license to you. This trademarks are owned by our Affiliate, Nzus, Corp. They are registered on the Principal Register of the United States Patent and Trademark Office.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Coffee grants franchisees a protected territory. The franchisor will not establish a company-owned or franchised outlet selling similar goods or services under the same trademarks within the franchisee's protected territory. The continuation of this territorial protection does not depend on achieving specific sales volumes or market penetration. The FDD specifies that there are no circumstances that permit Chocolate Fish Coffee to modify a franchisee's territorial rights. The franchise agreement will specify a territory, which will be determined by Chocolate Fish Coffee, and will usually have a population of approximately 40,000 people. The territory will usually be specified as a radius around the franchise location; however, Chocolate Fish Coffee may use other boundaries such as county lines or other political boundaries, streets, geographical features, or trade area.
However, Chocolate Fish Coffee retains the right to solicit and accept orders from consumers inside the franchisee's territory through other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales. The franchisee will not receive any compensation for these sales. Additionally, there are no restrictions on the franchisee from soliciting or accepting orders from consumers outside of their territory, although all marketing and advertising is subject to Chocolate Fish Coffee's approval.
If a franchisee signs a Multi-Unit Development Agreement (MUDA), they will receive an exclusive territory as an area developer. The continuation of this territorial exclusivity depends on adherence to the development schedule outlined in the MUDA. Failure to adhere to the development schedule gives Chocolate Fish Coffee the right to terminate the MUDA, but not any franchise agreements that are already signed. Chocolate Fish Coffee does not operate or franchise businesses under different trademarks selling similar goods or services, but the franchise agreement does not prohibit them from doing so.