Does Chocolate Fish Coffee require landlords to sign a Rider to Lease Agreement?
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, franchisees must use reasonable efforts to have their landlord sign Chocolate Fish Coffee's form of Rider to Lease Agreement. This agreement is included as Exhibit D in the FDD.
While Chocolate Fish Coffee requires franchisees to make reasonable efforts to obtain the landlord's signature, the language suggests that it may not be a strict requirement for all locations. The franchisee's business location is subject to Chocolate Fish Coffee's approval and must meet their specifications.
Prospective franchisees should clarify with Chocolate Fish Coffee what constitutes "reasonable efforts" and under what circumstances a lease might be approved even without the Rider to Lease Agreement. Understanding the specific requirements for real estate and the potential consequences of not securing the Rider is crucial before signing a franchise agreement.