To whom are payments for furniture, fixtures, and equipment made when opening a Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Furniture, Fixtures, and Equipment (see Note 3) | $65,000 - $125,0 | Check, debit, and/or credit | As incurred | Our Affiliate, Vendors and suppliers |
Notes
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- The majority of the Furniture, Fixtures and Equipment investment will be paid to third party vendors and suppliers and according to our standards and specifications. Of this total amount, $49,642 to $105,742 will be paid to our Affiliate for specific equipment, supplies and items.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 13–16)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the estimated initial investment for furniture, fixtures, and equipment ranges from $65,000 to $125,000. These payments are made to Chocolate Fish Coffee's affiliate, as well as to various vendors and suppliers.
Note 3 in the FDD elaborates that a significant portion of this investment, specifically $49,642 to $105,742, is paid to Chocolate Fish Coffee's affiliate for specific equipment, supplies, and items. The remaining balance is paid to third-party vendors and suppliers, adhering to Chocolate Fish Coffee's standards and specifications.
This arrangement means a prospective franchisee will need to manage payments to multiple entities during the initial setup phase. It's important to understand the specific items purchased from Chocolate Fish Coffee's affiliate versus those sourced from other vendors to effectively manage the budget and ensure compliance with brand standards. Franchisees should clarify with Chocolate Fish Coffee the exact breakdown of required purchases from the affiliate and the approved vendor list to make informed decisions.