Is there a charge for the business data license granted by Chocolate Fish Coffee to the franchisee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the customer and non-public data generated by the business is considered confidential information and is exclusively owned by Chocolate Fish Franchising. However, Chocolate Fish Franchising licenses this data back to the franchisee for use in connection with their Chocolate Fish Coffee business.
This license is granted without charge to the franchisee. This means that while Chocolate Fish Coffee retains ownership of the business data, franchisees can use it to operate and improve their individual locations without incurring additional licensing fees.
This arrangement allows Chocolate Fish Coffee to maintain control over valuable data assets while empowering franchisees with the information they need to manage their businesses effectively. Franchisees benefit from using the data without direct costs, but must understand that the data ultimately belongs to Chocolate Fish Coffee and its use is restricted to operating the franchise.