What rights and remedies does Chocolate Fish Coffee retain in addition to the non-compliance fee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
While Franchisee is in default or breach of this Agreement, Chocolate Fish Franchising may (i) require that Franchisee pay cash on delivery for products or services supplied by Chocolate Fish Franchising, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
No such action by Chocolate Fish Franchising shall be a breach or constructive termination of this Agreement, change in competitive circumstances or similarly characterized, and Franchisee shall not be relieved of any obligations under this Agreement because of any such action.
Such rights of Chocolate Fish Franchising are in addition to any other right or remedy available to Chocolate Fish Franchising.
- 11.5 Business Data. All customer data and other non-public data generated by the Business is Confidential Information and is exclusively owned by Chocolate Fish Franchising.
Chocolate Fish Franchising hereby licenses such data back to Franchisee without charge solely for Franchisee's use in connection with the Business for the term of this Agreement.
- 11.6 Innovations. Franchisee shall disclose to Chocolate Fish Fr
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, in the event of a franchisee's default or breach of the agreement, Chocolate Fish Coffee has several rights and remedies beyond just a non-compliance fee. Chocolate Fish Coffee can demand cash on delivery for products or services it supplies to the franchisee. They can also halt the sale or provision of any products and services to the franchisee. Additionally, Chocolate Fish Coffee can request that third-party vendors cease selling or providing products or services to the franchisee. These actions by Chocolate Fish Coffee do not constitute a breach or constructive termination of the agreement, nor do they relieve the franchisee of their obligations.
Chocolate Fish Coffee also retains ownership of all customer data and non-public data generated by the franchisee's business, classifying it as confidential information. While Chocolate Fish Coffee licenses this data back to the franchisee for use in connection with the business during the term of the agreement, the underlying ownership remains with Chocolate Fish Coffee. The franchisee is also obligated to disclose any innovations related to the Chocolate Fish Coffee business to the franchisor.
These rights are in addition to any other legal or equitable remedies available to Chocolate Fish Coffee. This means that Chocolate Fish Coffee can pursue other legal avenues to address the franchisee's default or breach, such as seeking injunctive relief or monetary damages. Prospective franchisees should be aware of these extensive rights and remedies available to Chocolate Fish Coffee in the event of a default or breach, as they could significantly impact the operation and financial viability of their franchise.