Under what circumstances might Chocolate Fish Coffee require a remodel as a condition?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, Chocolate Fish Franchising may require Franchisee to undertake and complete a Remodel of the Location to Chocolate Fish Franchising's satisfaction. Franchisee must complete the Remodel in the time frame specified by Chocolate Fish Franchising. Chocolate Fish Franchising may require the Franchisee to submit plans for Chocolate Fish Franchising's reasonable approval prior to commencing a required Remodel. Chocolate Fish Franchising's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, Chocolate Fish Franchising has the right to mandate that franchisees undertake a remodel of their location to meet the franchisor's satisfaction. The franchisee is responsible for completing the remodel within the timeframe specified by Chocolate Fish Franchising and may be required to submit plans for approval before starting the remodel.
However, Chocolate Fish Coffee's right to require a remodel is subject to certain limitations. A remodel will not be required during the first two or last two years of the franchise term. An exception exists if a remodel is required as a condition for renewal of the term or for a transfer of the franchise. Additionally, Chocolate Fish Coffee will not require a remodel more than once every five years, calculated from the completion date of the previous remodel.
For a prospective Chocolate Fish Coffee franchisee, this means they should be prepared to invest in a remodel at some point during their franchise term, understanding that the timing is restricted. It is important to factor in the potential costs of remodeling when evaluating the financial viability of the franchise. Franchisees should also maintain open communication with Chocolate Fish Coffee to understand the scope and requirements of any planned remodel, ensuring they can meet the franchisor's standards and timelines.