Is there a Multi-Unit Development Agreement included in the Chocolate Fish Coffee franchise offering?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
If you sign a Multi-Unit Development Agreement (attached as Exhibit C to this disclosure document), you will develop multiple Chocolate Fish Coffee outlets, on an agreed-upon schedule.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Chocolate Fish Coffee business, (3) you must be in compliance with all brand requirements at your open Chocolate Fish Coffee business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
If you sign a MUDA, you will receive an exclusive territory as an area developer. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Chocolate Fish Coffee Roasters outlet. The continuation of your territorial exclusivity depend on your adherence to the development schedule states in the MUDA. If you fail to adhere to the
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
Yes, according to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchise offering includes a Multi-Unit Development Agreement (MUDA). If a franchisee and Chocolate Fish Coffee sign a MUDA, the franchisee gains the right to establish a mutually-agreed number of additional Chocolate Fish Coffee outlets based on a mutually-agreed schedule. The MUDA is attached as Exhibit C to the disclosure document.
However, the right to develop additional Chocolate Fish Coffee outlets under the MUDA is contingent upon several factors. The franchisee must comply with the development schedule, possess sufficient financial and organizational capacity to manage each additional business, adhere to all brand requirements at their existing Chocolate Fish Coffee businesses, and avoid defaulting on any agreements with Chocolate Fish Coffee. Chocolate Fish Coffee retains the right to approve the locations and territories for future sites, applying their then-current standards.
The franchisee is not obligated to develop additional outlets under the MUDA and can terminate it at any time without penalty. Conversely, Chocolate Fish Coffee reserves the right to terminate the franchisee's right to develop additional outlets if the development schedule outlined in the MUDA is not met. If a MUDA is signed, the franchisee will receive an exclusive territory as an area developer, and Chocolate Fish Coffee will not establish other outlets selling similar goods or services under the same trademarks in that territory, as long as the development schedule is followed.