Under what conditions might Chocolate Fish Coffee charge a $500 fee for non-compliance?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $500 | On demand | We may charge you $500 if your business | |
| is not in compliance with our system | |||
| specifications or the franchise agreement | |||
| and you fail to correct the non-compliance | |||
| after 30 days’ notice. Thereafter, we may | |||
| charge you $250 per week until you | |||
| correct such non-compliance. |
Source: Item 6 — OTHER FEES (FDD pages 10–13)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, a franchisee may be charged a $500 fee for non-compliance. Specifically, if a Chocolate Fish Coffee business is not in compliance with the system specifications outlined in the franchise agreement, the franchisee will be subject to a $500 fee.
However, this fee is not immediately assessed. Chocolate Fish Coffee will provide the franchisee with a 30-day notice to correct the non-compliance. If the franchisee fails to rectify the issue within this 30-day period, the $500 fee will be charged.
Furthermore, the non-compliance fee does not end at $500. Chocolate Fish Coffee may charge an additional $250 per week until the franchisee corrects the non-compliance. This escalating fee structure is designed to incentivize franchisees to promptly address any issues and adhere to the franchise agreement and system standards.