How is the 'Location' of a Chocolate Fish Coffee franchise determined?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
6.1 Determining Location and Territory.
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Chocolate Fish Franchising for acceptance, with all related information Chocolate Fish Franchising may request. If Chocolate Fish Franchising does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) 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.
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Chocolate Fish Franchising, Franchisee must submit the proposed lease to
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 of a franchise is determined through a process involving the franchisee and franchisor. The franchise agreement grants the franchisee the right to operate a Chocolate Fish Coffee business solely at the agreed-upon location. If the specific location isn't stated on the Summary Page of the franchise agreement when it's signed, the parties will determine the location later according to Section 6.1 of the agreement.
The franchisee is responsible for finding a potential location within the Development Area outlined on the Summary Page. The franchisee must then submit this proposed location to Chocolate Fish Franchising, including any related information the franchisor requests. Chocolate Fish Franchising has 30 days to either accept or reject the proposed location in writing; if they don't respond within that timeframe, the location is considered rejected.
Once Chocolate Fish Franchising accepts a location, they will issue a Location Acceptance Letter, which specifies both the location and the territory granted to the franchisee. The franchisor determines the territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Chocolate Fish Franchising fails to define the territory in writing within 60 days after the franchisee opens for business, the territory will default to include the zip code of the franchised business and the immediately surrounding zip codes, encompassing a total population of 40,000 people.
Furthermore, Chocolate Fish Coffee requires that if the franchisee enters into a lease agreement for the location, the lease term (including any renewal options) must be at least as long as the term of the franchise agreement. The franchisee must also make commercially reasonable efforts to have the landlord sign a rider to the lease in the form required by Chocolate Fish Franchising. This ensures that the franchisee has secure tenure at the location for the duration of the franchise agreement.