What is the minimum term required for the lease of a Chocolate Fish Coffee franchise location?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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
Chocolate Fish Franchising for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Chocolate Fish Franchising.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the term of the lease for a franchise location, including any renewal terms, must be no less than the term of the Franchise Agreement. This means that when a franchisee signs a lease for their Chocolate Fish Coffee location, the lease duration must cover the entire length of the franchise agreement.
This requirement ensures that Chocolate Fish Coffee franchisees have control of their business location for the duration of their franchise agreement. It prevents situations where the lease expires before the franchise agreement, which could force the franchisee to relocate or close the business. This provision protects both the franchisee's investment and Chocolate Fish Coffee's brand reputation at that location.
Prospective Chocolate Fish Coffee franchisees should carefully consider the length of the franchise agreement when negotiating their lease terms. They should also be aware that Chocolate Fish Coffee may require them to submit the proposed lease for written approval and to obtain the landlord's signature on a rider to the lease, using a form required by Chocolate Fish Coffee.