Who is responsible for the expense of complying with recall instructions for Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.6 Product Recalls. If Chocolate Fish Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Chocolate Fish Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchisee is responsible for the expense of complying with recall instructions. Specifically, if Chocolate Fish Coffee or any vendor, supplier, or manufacturer of an item used or sold in the franchisee's business issues a recall, the franchisee must immediately stop using or selling the item.
The franchisee is then required to comply with all instructions from Chocolate Fish Coffee or the vendor, supplier, or manufacturer regarding the item. This includes, without limitation, the recall, repair, and/or replacement of the item, all at the franchisee's own expense.
This means that a Chocolate Fish Coffee franchisee will bear the financial burden of any product recalls, including the costs of removing the product from shelves, repairing or replacing defective items, and any other associated expenses. This is a potentially significant cost that franchisees should consider, as recalls can be disruptive and expensive.