factual

Does Chocolate Fish Coffee require franchisees to sign confidentiality clauses that restrict them from discussing their experiences with potential franchisees?

Chocolate_Fish_Coffee Franchise · 2024 FDD

Answer from 2024 FDD Document

be disclosed to other buyers when you leave the franchise system. In some instances, current and former franchisees sign provisions restricting their ability to speak openly about their experience with our franchise system. You may wish to speak with current and former franchisees, but be aware that not all such franchisees will be able to communicate with you.

List of Current Franchisees

The following is a list of the current franchisees who as of the end of our last fiscal year were open and operating in our system:

None.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 38–41)

What This Means (2024 FDD)

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, franchisees have not been required to sign confidentiality clauses that would restrict them from discussing their experiences with potential franchisees. The FDD states that in the last three fiscal years, no franchisees have signed any contract, order, or settlement provision that directly or indirectly restricts a current or former franchisee from discussing his or her personal experience as a franchisee in their system with any prospective franchisee.

However, the FDD also notes that in some instances, current and former franchisees sign provisions restricting their ability to speak openly about their experience with the Chocolate Fish Coffee franchise system. The document advises prospective franchisees that they may wish to speak with current and former franchisees, but to be aware that not all such franchisees will be able to communicate with them.

This information is important for potential franchisees as it clarifies that while Chocolate Fish Coffee has not enforced confidentiality through formal agreements in the past three years, there might be individual cases where franchisees have agreed to certain restrictions. Therefore, it is advisable to inquire further about the nature of these provisions and their potential impact on communication with current and former franchisees during the due diligence process.

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.