If I sign a Multi-Unit Development Agreement with Chocolate Fish Coffee, what will they approve?
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.
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, if you sign a Multi-Unit Development Agreement, Chocolate Fish Coffee will approve the location of future sites and territories for those sites. The FDD specifies that Chocolate Fish Coffee's then-current standards for sites and territories will apply. However, Chocolate Fish Coffee is not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
When considering potential locations, Chocolate Fish Coffee will review and advise you regarding locations that you submit to them. The factors Chocolate Fish Coffee considers in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms. To obtain Chocolate Fish Coffee's approval, you must provide all information and documents about the site that they require.
The time limit for Chocolate Fish Coffee to approve or disapprove your proposed site is 30 days after you submit all of their required documents and information. If you and Chocolate Fish Coffee 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 Chocolate Fish Coffee agrees to extend the deadline, you will be in default and they may terminate your franchise agreement.