Who pays for the customer evaluation programs for a Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Chocolate Fish Franchising for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping.
Chocolate Fish Franchising shall share with Franchisee the results of these programs, as they pertain to the Business.
Franchisee must meet or exceed any minimum score requirements set by Chocolate Fish Franchising for such programs.
Chocolate Fish Franchising may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees are responsible for covering the expenses associated with customer evaluation and compliance programs. These programs are required by Chocolate Fish Franchising and may include customer feedback systems, customer survey programs, and mystery shopping.
Chocolate Fish Coffee will share the results of these programs with the franchisee, specifically as they relate to the franchisee's business. Franchisees must also meet or exceed any minimum score requirements set by Chocolate Fish Franchising for these programs. These minimum scores may also extend to public internet review sites like Yelp or Google.
This means that a prospective Chocolate Fish Coffee franchisee needs to budget for these ongoing expenses, as they are not covered by the franchisor. Furthermore, franchisees need to be aware that their performance in these evaluations can impact their standing with the franchisor, potentially affecting their ability to renew their franchise agreement if minimum scores are not met.