Under the Chocolate Fish Coffee franchise agreement, where will the franchisee operate the Chocolate Fish Coffee business?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall develop, open and operate a Chocolate Fish Coffee business at the Location for the entire term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the franchisee is required to develop, open, and operate their Chocolate Fish Coffee business at a specific location for the entire term of the Franchise Agreement. This location is determined either when the agreement is initially signed, as indicated on the Summary Page, or later in accordance with Section 6.1 of the agreement if no location is initially specified.
Chocolate Fish Coffee grants the franchisee a protected territory, within which Chocolate Fish Coffee will not establish or license another business selling similar goods or services under the same trademarks. However, Chocolate Fish Coffee retains the right to establish or license businesses outside this territory, even if they are in close proximity or impact the franchisee's business. They also reserve the right to operate or license businesses under different brand names anywhere and sell products and services through other distribution channels, including the internet, within the franchisee's territory.
This means that while franchisees have a defined location for their business, Chocolate Fish Coffee retains considerable flexibility in expanding its brand through other channels and locations, potentially impacting the franchisee's market. Franchisees should carefully consider the scope of their protected territory and the potential for competition from other Chocolate Fish Coffee ventures when evaluating the franchise opportunity.