What should a prospective Chocolate Fish Coffee franchisee do to investigate costs and expenses?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
services less sales tax, discounts, and returns.
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- The financial performance representation does not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Chocolate Fish Coffee Roasters business. Franchisees or former franchisees, listed in Item 20 of this Franchise Disclosure Document, may be one source of this information.
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- Our Affiliates do not pay royalties or marketing fees to us;
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 37–38)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the financial performance representation provided does not reflect the costs of sales, operating expenses, or other costs that must be deducted to determine net income or profit. Therefore, the FDD advises that prospective franchisees should conduct an independent investigation of the costs and expenses they will incur while operating a Chocolate Fish Coffee Roasters business.
To aid in this investigation, the FDD suggests that one potential source of information is current or former Chocolate Fish Coffee franchisees, who are listed in Item 20 of the Franchise Disclosure Document. Speaking with these individuals can provide valuable insights into the actual costs they have experienced in their own businesses.
Furthermore, the FDD states that written substantiation of the information contained in Item 19 will be made available to prospective franchisees upon reasonable request. This suggests that Chocolate Fish Coffee is willing to provide additional documentation to support the financial performance representations made, which could be helpful in understanding the underlying data and assumptions. By contacting existing franchisees and requesting substantiation of the financial performance data, prospective franchisees can gain a more comprehensive understanding of the potential costs and expenses associated with operating a Chocolate Fish Coffee franchise.