Is Chocolate Fish Coffee obligated to select the site for my franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not select your site.
Your site is subject to our approval.
To obtain our approval, you must provide all information and documents about the site that we require.
(iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
(iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1).
If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement.
Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee FDD, Chocolate Fish Coffee is not obligated to select a site for your franchise. However, Chocolate Fish Coffee will review and advise you regarding potential locations that you submit to them. If you sign a Multi-Unit Development Agreement, Chocolate Fish Coffee will approve the location of future sites and territories for those sites, and their then-current standards for sites and territories will apply.
The FDD states that if your site is not already known and approved by Chocolate Fish Coffee when you sign your franchise agreement, then you and Chocolate Fish Coffee will specify in your franchise agreement the area in which you must select a site. Your site is subject to Chocolate Fish Coffee's approval, and to obtain this approval, you must provide all required information and documents about the site.
Chocolate Fish Coffee will consider factors such as general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms when approving sites. Chocolate Fish Coffee has 30 days to approve or disapprove your proposed site after you submit all the required documents and information. If you and Chocolate Fish Coffee cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement, potentially leading to a default and termination of the agreement unless an extension is agreed upon.