What happens if a Chocolate Fish Coffee franchisee is in default of their agreement when trying to transfer?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (vi) Franchisee has paid all monetary obligations to Chocolate Fish Franchising and its affiliates, and to any lessor, vendor, supplier, or lender to the Business, and Franchisee is not otherwise in default or breach of this Agreement or of any other obligation owed to Chocolate Fish Franchising or its affiliates;
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, a Chocolate Fish Coffee franchisee is not permitted to transfer their franchise if they are in default of their franchise agreement.
Specifically, the franchisee must have met all monetary obligations to Chocolate Fish Coffee, its affiliates, lessors, vendors, suppliers, and lenders. Additionally, the franchisee must not be in breach of the Franchise Agreement or any other obligation to Chocolate Fish Coffee or its affiliates.
This condition ensures that Chocolate Fish Coffee maintains control over who becomes a franchisee and protects the brand's reputation by preventing transfers to parties who may not meet the franchisor's standards or who have outstanding financial obligations. This is a fairly standard clause in most franchise agreements.