What triggers an inspection of my Chocolate Fish Coffee business that would result in a fee?
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).
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, an inspection of your business that results in a fee is triggered by specific events. If Chocolate Fish Coffee conducts an inspection due to a governmental report, a customer complaint, other customer feedback, or your default or non-compliance with any system specification, you will be responsible for covering the costs of the inspection.
Furthermore, if a Chocolate Fish Coffee franchisee's business is not in compliance with the system specifications or the franchise agreement, the franchisee will be charged $500 if they fail to correct the non-compliance after 30 days’ notice. After that initial 30-day period, Chocolate Fish Coffee may charge $250 per week until the non-compliance is corrected.
It's important to note that Chocolate Fish Coffee retains the right to take action to resolve customer complaints about a franchisee's business. If Chocolate Fish Coffee responds to a customer complaint, they may require the franchisee to reimburse them for their expenses. This highlights the importance of maintaining Chocolate Fish Coffee's standards and addressing customer concerns promptly to avoid potential fees and intervention from the franchisor.