factual

What provision must Chocolate Fish Coffee make if it transfers its obligations to another party?

Chocolate_Fish_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 11.8 Delegation. Chocolate Fish Franchising may delegate any duty or obligation of Chocolate Fish Franchising under this Agreement to an affiliate or to a third party.

Source: Item 23 — RECEIPTS (FDD pages 41–119)

What This Means (2024 FDD)

According to the 2024 Chocolate Fish Coffee FDD, Chocolate Fish Franchising may delegate any duty or obligation of Chocolate Fish Franchising under this Agreement to an affiliate or to a third party.

This means that Chocolate Fish Coffee retains the right to transfer its responsibilities and duties outlined in the franchise agreement to another entity, which could be an affiliated company or an entirely separate third party. For a franchisee, this implies that the entity they initially contracted with might not be the one they deal with throughout the term of the agreement.

While Chocolate Fish Coffee has the right to transfer its obligations, the FDD does not specify any required notifications or approvals needed from the franchisee. A prospective franchisee should seek clarification from Chocolate Fish Coffee regarding the conditions under which such a transfer could occur and what rights the franchisee has in such a scenario.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.