Can Chocolate Fish Coffee use the internet to make sales within my territory?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Chocolate Fish Coffee retains the right to sell products and services within a franchisee's territory through various channels of distribution, including the internet. This means that even though a franchisee is granted a protected territory, Chocolate Fish Coffee can still solicit and accept orders from consumers within that territory through online sales.
This arrangement could impact a franchisee's potential revenue, as Chocolate Fish Coffee does not pay any compensation to the franchisee for sales made within their territory through these alternative channels. While the franchisee is protected from other franchised or company-owned Chocolate Fish Coffee outlets opening in their territory, they will still face competition from Chocolate Fish Coffee's online presence.
Prospective franchisees should consider the potential impact of online sales on their business and factor this into their financial projections. It is also important to note that while franchisees can solicit orders outside their territory, all marketing and advertising efforts are subject to Chocolate Fish Coffee's approval, ensuring brand consistency.