Does Chocolate Fish Coffee require franchisees to have their business location approved?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
The following are our current specific obligations for purchases and leases:
- A. Real Estate. Your business location is subject to our approval and must meet our specifications. You must use reasonable efforts to have your landlord sign our form of Rider to Lease Agreement (attached to this disclosure document as Exhibit D).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 16–18)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the business location is subject to the franchisor's approval and must meet their specifications. This means that prospective franchisees cannot simply choose any location they prefer; Chocolate Fish Coffee has specific criteria that the location must satisfy.
Chocolate Fish Coffee also requires franchisees to use reasonable efforts to have their landlord sign Chocolate Fish Coffee's form of Rider to Lease Agreement, which is attached to the FDD as Exhibit D. This suggests that the lease agreement itself is subject to Chocolate Fish Coffee's review and approval, giving them some control over the terms of the lease.
Location approval is a common practice in franchising, as the location can significantly impact the success of the business. By maintaining control over site selection, Chocolate Fish Coffee aims to ensure brand consistency and maximize the potential for profitability across all franchise locations. Prospective franchisees should carefully review Chocolate Fish Coffee's site selection criteria and the Rider to Lease Agreement to understand the full scope of these requirements.