To whom is the rent and lease security deposit paid for a Chocolate Fish Coffee franchise?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
CHISE AGREEMENT
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $30,000 - $30,0 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent and Lease Security | $3,000 - $16,2 | 200 Check | Upon signing lease | Landlord |
| Deposit (see N |
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 rent and lease security deposit is paid to the Landlord. This payment is due upon signing the lease. The estimated cost for the rent and lease security deposit ranges from $3,000 to $16,200.
Typically, a lease security deposit is held by the landlord to cover any potential damages to the property or unpaid rent. The FDD notes that the lease security deposit and utility deposits will usually be refundable unless the franchisee owes money to the landlord or utility provider.
Prospective Chocolate Fish Coffee franchisees should carefully review the lease agreement to understand the terms and conditions of the security deposit, including the circumstances under which it may be withheld. Negotiating favorable lease terms, including a "free rent" period for build-out, can help manage initial investment costs.