In Michigan, what rights does a Chocolate Fish Coffee franchisee have regarding joining an association of franchisees?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
7.17 Public Relations. Franchisee shall not make any public statements (including giving interviews or issuing press releases) regarding Chocolate Fish Coffee, the Business, or any particular incident or occurrence related to the Business, without Chocolate Fish Franchising's prior written approval, which will not be unreasonably withheld.
7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization, or (ii) act in support of any such organization, without Chocolate Fish Franchising's prior written approval, which will not be unreasonably withheld.
7.19 No Other Activity Associated with the Business. Franchisee shall not engage in any business or other activity at the Location other than operation of the Chocolate Fish Coffee Business.
Franchisee shall not use assets of the Business for any purpose other than the Business.
If Franchisee is an entity, the entity shall not own or operate any other business except Chocolate Fish Coffee businesses.
7.20 No Third-Party Management. Franchisee shall not engage a third-party management company to manage or operate the Business without the prior written approval of Chocolate Fish Franchising, which will not be unreasonably withheld.
7.21 Identification. Franchisee must identify itself as the independent owner of the Business in the manner prescribed by Chocolate Fish Franchising.
Franchisee must display at the Business signage prescribed by Chocolate Fish Franchising identifying the Location as an independently owned franchise.
- 7.22 Business Practices. Franchisee, in all interactions with customers, employees, vendors, governmental authorities, and other third parties, shall be honest and fair.
Franchisee shall comply with any code of ethics or statement of values from Chocolate Fish Franchising.
Franchisee shall not take any action which may injure the goodwill associated with the Marks.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document for Chocolate Fish Coffee does not specify any particular rights for franchisees in Michigan to form or join a franchisee association. The document does outline general requirements and restrictions applicable to all franchisees, such as those related to public relations, association with causes, and business practices.
Specifically, franchisees must obtain Chocolate Fish Coffee's prior written approval before making any public statements regarding the brand or associating the business with any charitable, political, or religious organization. Franchisees are also expected to maintain honest and fair business practices in all interactions and comply with any code of ethics or statement of values from Chocolate Fish Coffee. These provisions suggest that while franchisees may have the ability to associate, their activities could be subject to franchisor oversight, especially concerning public representation and brand reputation.
Because the FDD lacks specific details about franchisee association rights in Michigan, prospective franchisees should directly ask Chocolate Fish Coffee about their policies on franchisee associations, any existing franchisee groups, and the extent to which the franchisor is willing to engage with such associations. This information is crucial for understanding the level of support and collaboration franchisees can expect within the Chocolate Fish Coffee system.