Under what article of the Chocolate Fish Coffee MUDA are transfer obligations detailed?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| r. Records and reports | FA: Article 10 MUDA: Not Applicable | Item 11 |
| s. Inspections and audits | FA: §§ 10.5, 11.2 | Items 6 |
| MUDA: Not Applicable | and 11 | |
| t. Transfer | FA: Article 15 MUDA: Article 7 | Items 6 and 17 |
| u. Renewal | FA: § 3.2 | Item |
| MUDA: Not Applicable | 17 | |
| v. Post-termination obligations | FA: Article 13, § 14.3 MUDA: Not Applicable | Item 17 |
| w. Non-competition covenants | FA: § 13.2 MUDA: Not Applicable | Item 17 |
| x. Dispute resolution | FA: Article 17 MUDA: Article 7 | Items 6 and 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–20)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the obligations related to transfer under the Multi-Unit Development Agreement (MUDA) are detailed in Article 7. This information is part of a larger table outlining the franchisee's principal obligations under both the Franchise Agreement (FA) and the MUDA. The table helps prospective franchisees locate detailed information about their obligations within the franchise and other agreements.
Specifically, the table cross-references the obligation to the section in the agreement where it is described. For transfer obligations, the Franchise Agreement refers to Article 15, while the MUDA refers to Article 7. This means that if a franchisee has entered into a Multi-Unit Development Agreement with Chocolate Fish Coffee, they should consult Article 7 of that agreement to understand their responsibilities and the franchisor's requirements regarding the transfer of rights or obligations under the agreement.
It is important for potential franchisees to carefully review Article 7 of the MUDA to fully understand the conditions under which a transfer can occur, any restrictions on transfer, and any fees or costs associated with the transfer process. Understanding these obligations is crucial before entering into a franchise agreement with Chocolate Fish Coffee, especially if the franchisee intends to develop and operate multiple units.