What is the maximum frequency with which Chocolate Fish Coffee can require a remodel?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, Chocolate Fish Franchising may require Franchisee to undertake and complete a Remodel of the Location to Chocolate Fish Franchising's satisfaction. Franchisee must complete the Remodel in the time frame specified by Chocolate Fish Franchising. Chocolate Fish Franchising may require the Franchisee to submit plans for Chocolate Fish Franchising's reasonable approval prior to commencing a required Remodel. Chocolate Fish Franchising's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee FDD, franchisees may be required to remodel their location to meet the franchisor's standards. However, Chocolate Fish Coffee limits the frequency of these remodels.
Specifically, Chocolate Fish Coffee will not require a remodel during the first two or last two years of the franchise term. An exception exists if a remodel is required as a condition for renewal or transfer of the franchise.
Beyond these initial and final periods, Chocolate Fish Coffee will not require a remodel more than once every five years, calculated from the completion date of the previous remodel. This provides some predictability for franchisees in terms of capital expenditure planning.