What does 'you' mean in the Chocolate Fish Coffee disclosure document?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
In this disclosure document, "we", "us," or "our" refers to Chocolate Fish Franchising, LLC. "You" means the person to whom we grant a franchise. If you are a corporation, limited liability company, or other entity, each owner of the franchise entity must sign our Guaranty and Non-Compete Agreement, which means that all of the franchise agreement's provisions also will apply to your owners.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the term "you" refers to the individual or entity to whom Chocolate Fish Franchising, LLC grants a franchise. This is a standard definition in franchise agreements, clarifying who the agreement applies to. If the franchisee is a corporation, limited liability company, or other entity, each owner of that entity must sign a Guaranty and Non-Compete Agreement.
This requirement means that all provisions of the franchise agreement will apply to the owners of the franchise entity as well. This is a common practice in franchising to ensure that individuals behind a corporate franchisee are also bound by the terms of the agreement, especially regarding non-competition and guarantees.
Prospective franchisees should carefully review the Guaranty and Non-Compete Agreement to understand the obligations and restrictions it places on them personally, as it extends beyond the responsibilities of the business entity itself. This ensures that Chocolate Fish Coffee can enforce the agreement against the individuals who control the franchise, not just the business entity.