Does the Location Acceptance Letter for Chocolate Fish Coffee specify the territory of the business?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
When Chocolate Fish Franchising accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Chocolate Fish Franchising shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Chocolate Fish Franchising fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and those zip codes which immediately surround the location of the franchised business and together comprise a total of 40,000 population.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the Location Acceptance Letter does specify the territory of the business. When Chocolate Fish Coffee accepts a proposed location, they will issue a Location Acceptance Letter, which will state both the location and the territory. Chocolate Fish Coffee determines the territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document.
If Chocolate Fish Coffee fails to state the territory in writing within 60 days after the franchisee opens the business to the public, the territory will default to the zip code which includes the location of the franchised business and those zip codes which immediately surround the location of the franchised business, comprising a total of 40,000 population. This default provides a minimum territory size if the franchisor does not explicitly define it in a timely manner.
Chocolate Fish Coffee also grants the franchisee the right to operate a Chocolate Fish Coffee business solely at the specified location. Chocolate Fish Coffee will not establish, nor license the establishment of, another business within the territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee business. However, Chocolate Fish Coffee retains the right to establish and license others to establish and operate Chocolate Fish Coffee businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business.