Does Chocolate Fish Coffee have to respond to a customer complaint?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks | |---|---|---|---| | | Our actual cost | On demand | Payable only if (1) we audit you because | | | | | you have failed to submit required reports | | | | | or other non-compliance, or (2) the audit | | | | | concludes that you under-reported gross | | | | | sales b | | | | | period | | | | | Payable only if we conduct an inspection | | | | | of your business because of a | | | | | governmental report, customer complaint | | | | | or other customer feedback, or your | | | | | default or non-compliance with any | | | | | system specification. | | | | | We may cure your non-compliance on | | | | | your behalf (for example, if you do not | | | | | have required insurance, we may purchase | | | | | insurance for you), and you will owe our | | | | | costs plus a 10% administrative fee. | | | $10,000 plus any | | Payable if you sell your business. | | | broker fees and other | | | | | out-of-pocket costs | | | | | we incur | | | | | An amount equal to | | | | | royalty fees and | | | | | Brand Fund | | | | | contributions for the | | | | | lesser of (i) 2 years | | | | | or (ii) the remaining | | | | | weeks of the | | | | | franchise term. | | | | | Our costs and losses | | You must indemnify and defend (with | | | from any legal | | counsel reasonably acceptable to us) us | | | action related to the | | and our affiliates against all losses in any | | | operation of your | | action by or against us related to, or | | | franchise | | alleged to arise out of, the operation of | | | | | your franchise (unless caused by our | | | | | misconduct or negligence). | All fees are payable only to us (other than local marketing spend and software subscription charges). All fees are imposed by us and collected by us (other than local marketing spend and software subscription charges). All fees are non-refundable. All fees are uniform for all franchisees, although we reserve the right to change, waive, or eliminate fees for any one or more
franchisees as we deem appropriate.
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Coffee itself may take action to resolve customer complaints about a franchisee's business. If Chocolate Fish Coffee responds to a customer complaint, it may require the franchisee to reimburse Chocolate Fish Coffee for its expenses. This indicates that while the franchisee is primarily responsible for handling customer complaints, Chocolate Fish Coffee reserves the right to intervene and ensure customer satisfaction, with the franchisee bearing the financial burden of Chocolate Fish Coffee's involvement. This could include the cost of Chocolate Fish Coffee sending representatives to the franchise location to address the complaint, or any other expenses incurred in resolving the issue.
Additionally, Chocolate Fish Coffee may conduct an inspection of a franchisee's business due to a customer complaint or other customer feedback. If such an inspection occurs, the franchisee is responsible for covering Chocolate Fish Coffee's actual costs associated with the inspection. This cost is payable on demand. This policy incentivizes Chocolate Fish Coffee franchisees to proactively address and resolve customer complaints to avoid incurring additional expenses from Chocolate Fish Coffee's intervention or inspection.
Chocolate Fish Coffee also has the right to require franchisees to use third-party vendors and suppliers for customer feedback systems. While the vendors and suppliers may bill franchisees directly, Chocolate Fish Coffee also has the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program. This gives Chocolate Fish Coffee more control over how customer feedback is collected and addressed, and ensures that franchisees are using systems that meet Chocolate Fish Coffee's standards.