Under what conditions might Chocolate Fish Coffee Franchising charge a fee for support?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Advice, Consulting, and Support. If Franchisee requests, Chocolate Fish Franchising will provide advice to Franchisee (by telephone or electronic communication) regarding improving and developing Franchisee's business, and resolving operating problems Franchisee encounters, to the extent Chocolate Fish Franchising deems reasonable. If Chocolate Fish Franchising provides in-person support in response to Franchisee's request, Chocolate Fish Franchising may charge its then-current fee plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support).
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Coffee Franchising may charge a fee for providing in-person support to a franchisee. This fee would cover Chocolate Fish Coffee Franchising's then-current fee, in addition to any out-of-pocket expenses incurred. These expenses include travel, lodging, and meals for the employees providing the on-site support.
This means that if a Chocolate Fish Coffee franchisee requests in-person assistance to improve their business or resolve operational issues, they may be responsible for covering not only the franchisor's service fee but also the associated travel and accommodation costs for the support team. This is in addition to the one week of on-site opening training and assistance that Chocolate Fish Coffee Franchising provides to support the franchisee's business opening.
It is important for prospective franchisees to understand that while initial support is included, any subsequent in-person support will likely incur additional costs. Franchisees should clarify the 'then-current fee' charged by Chocolate Fish Coffee Franchising for on-site support and factor in potential travel expenses when budgeting for ongoing operational support. This policy is fairly standard in the franchise industry, as it allows franchisors to recoup costs associated with providing specialized, on-location assistance beyond the initial setup and training.