Under what circumstances can Chocolate Fish Coffee withhold its written approval to open the business?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.5 Conditions to Opening. Franchisee shall notify Chocolate Fish Franchising at least 30 days before Franchisee intends to open the Business to the public. Before opening, Franchisee must satisfy all of the following conditions: (1) Franchisee is in compliance with this Agreement, (2) Franchisee has obtained all applicable governmental permits and authorizations, (3) the Business conforms to all applicable System Standards, (4) Chocolate Fish Franchising has inspected and approved the Business, (5) Franchisee has hired sufficient employees, (6) Franchisee's officers and employees have completed all of Chocolate Fish Franchising's required pre-opening training; and (7) Chocolate Fish Franchising has given its written approval to open, which will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, there are several conditions that must be met before a franchisee can open their business. Chocolate Fish Coffee will provide written approval to open the business if the franchisee is in compliance with the Franchise Agreement. The franchisee must also obtain all applicable governmental permits and authorizations. The business must conform to all applicable System Standards. Chocolate Fish Coffee must inspect and approve the business. The franchisee needs to have hired sufficient employees, and the officers and employees must complete all of Chocolate Fish Coffee's required pre-opening training.
Chocolate Fish Coffee states that its written approval to open the business will not be unreasonably withheld if all these conditions are met. This implies that if a franchisee fails to meet any of these conditions, Chocolate Fish Coffee has the right to withhold its approval.
It is important for prospective franchisees to understand these conditions thoroughly and ensure they are fully compliant before planning to open their Chocolate Fish Coffee franchise. Failure to meet these conditions could result in delays or even the inability to open the business.