When are notices effective under the Chocolate Fish Coffee franchise agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
B) if to Chocolate Fish Franchising, addressed to 30 N. Gould St., Ste R, Sheridan, WY 82801. Any party may designate a new address for notices by giving notice of the new address pursuant to this Section. Notices will be effective upon receipt (or first rejection) and must be: (1) delivered personally; (2) sent by registered or certified U.S. mail with return receipt requested; or (3) sent via overnight courier. Notwithstanding the foregoing, Chocolate Fish Franchising may amend the Manual, give binding notice of changes to System Standards, and deliver notices of default by electronic mail or other electronic communication.
- 18.10 Holdover. If Franchisee continues operating the Business after the expiration of the term without a renewal agreement or successor franchise agreement executed by the parties in accordance with Section 3.2, then at any time (regardless of any course of dealing by the parties),
Chocolate Fish Franchising may by giving written notice to Franchisee (the "Holdover Notice") either (i) require Franchisee to cease operating the Business and comply with all post-closing obligations effective immediately upon giving notice or effective on such other date as Chocolate Fish Franchising specifies, or (ii) bind Franchisee to a renewal term of 5 years, and deem Franchisee and its Owners to have made the general release of liability described in Section 3.2(vi).
18.11 Joint and Several Liability. If two or more people sign this Agreement as "Franchisee", each will have joint and several liability.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Franchising may deliver notices of default by electronic mail or other electronic communication. Additionally, Chocolate Fish Franchising can amend the manual and give binding notice of changes to System Standards through electronic means.
Regarding termination by the franchisee, the franchisee must provide written notice to Chocolate Fish Coffee detailing the alleged default if Chocolate Fish Coffee violates a material provision of the agreement. Termination by the Franchisee is effective 10 days after Chocolate Fish Coffee receives written notice of termination, but only if Chocolate Fish Coffee fails to cure the violation within 30 days or make substantial progress toward curing the violation.
Chocolate Fish Coffee can issue a "Holdover Notice" if a franchisee continues to operate the business after the expiration of the franchise term without a renewal agreement. In this case, Chocolate Fish Coffee may demand the franchisee cease operations immediately upon giving written notice or effective on a date specified by Chocolate Fish Coffee. Alternatively, Chocolate Fish Coffee can bind the franchisee to a renewal term of 5 years via written notice.