What is the notification timeframe required for a Chocolate Fish Coffee franchisee to elect to renew their agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into an unlimited number of successor agreements subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Chocolate Fish Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Chocolate Fish Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Chocolate Fish Franchising) renovations and changes to the Business as Chocolate Fish Franchising requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Chocolate Fish Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Chocolate Fish Franchising's then-standard form) of any and all claims against Chocolate Fish Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, a franchisee must notify Chocolate Fish Franchising of their election to renew their franchise agreement between 90 and 180 days prior to the end of the current term. The initial term of the agreement is 10 years. This notification period is crucial for franchisees who wish to continue operating their Chocolate Fish Coffee business beyond the initial term.
In addition to providing timely notice, the franchisee must also be in full compliance with the existing franchise agreement and any other agreements with Chocolate Fish Franchising at both the time of election and the time of renewal. Furthermore, franchisees are typically required to make any renovations or changes to the business that Chocolate Fish Franchising deems necessary to meet the then-current system standards. This may include a remodel of the premises.
Moreover, the franchisee will need to execute Chocolate Fish Coffee's then-current standard form of franchise agreement and related documents, including a personal guaranty. The terms of the renewed agreement may differ materially from the original, potentially including higher or different fees. However, the franchisee will not be required to pay another initial franchise fee. Finally, the franchisee and each owner must execute a general release of any and all claims against Chocolate Fish Franchising and its affiliates.