Under what conditions can a Chocolate Fish Coffee franchisee engage a third-party management company?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.20 No Third-Party Management. Franchisee shall not engage a third-party management company to manage or operate the Business without the prior written approval of Chocolate Fish Franchising, which will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, a franchisee is generally prohibited from engaging a third-party management company to manage or operate their Chocolate Fish Coffee business. However, this is not a strict prohibition.
The franchisee can engage a third-party management company if they obtain prior written approval from Chocolate Fish Franchising. The FDD states that this approval "will not be unreasonably withheld," which suggests that Chocolate Fish Coffee will consider such requests and grant them if the franchisee presents a reasonable case.
This policy ensures that Chocolate Fish Coffee maintains control over the standards and operations of its franchise locations, even when a franchisee chooses to delegate management responsibilities. A prospective franchisee should discuss specific circumstances under which third-party management might be desired to understand the franchisor's criteria for approval.