How often can Chocolate Fish Coffee require a remodel of the Location?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, Chocolate Fish Franchising may require Franchisee to undertake and complete a Remodel of the Location to Chocolate Fish Franchising's satisfaction. Franchisee must complete the Remodel in the time frame specified by Chocolate Fish Franchising. Chocolate Fish Franchising may require the Franchisee to submit plans for Chocolate Fish Franchising's reasonable approval prior to commencing a required Remodel. Chocolate Fish Franchising's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
- 7.14 Meetings. The Principal Executive shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone conference calls) that Chocolate Fish Franchising requires, including any national or regional brand conventions. Franchisee shall not permit the Principal Executive to fail to attend more than three consecutive required meetings.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees may be required to remodel their location to meet the brand's current standards. This remodel could include changes to the building design, exterior, signage, fixtures, furnishings, equipment, decor, color schemes, and presentation of the Chocolate Fish Coffee trademarks.
However, Chocolate Fish Coffee limits the frequency of these required remodels. Specifically, a remodel will not be required during the first two or last two years of the franchise term. An exception to this is if a remodel is required as a condition for renewing the franchise term or transferring ownership.
Furthermore, Chocolate Fish Coffee will not require a remodel more than once every five years, calculated from the completion date of the previous remodel. This provides some predictability for franchisees in terms of capital expenditure planning. Franchisees may be required to submit plans for Chocolate Fish Coffee's approval before starting any remodel work.