Chocolate Fish Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$244,200 - $435,700
Franchise Fee
$22,500
Total US Locations
3
Business Summary
Chocolate Fish Coffee operates specialty coffee shops that offer a hybrid business model. This model features high-quality caffeinated beverages, a simple food menu, and exceptional customer service. Franchisees of Chocolate Fish Coffee will develop and run these coffee shops.
Corporate History
Chocolate Fish Franchising, LLC was formed as a Wyoming Limited Liability Company on October 27, 2023. The underlying business model for Chocolate Fish Coffee, however, has a longer history. An affiliate company, NZUS, Corp, was incorporated on July 16, 2007, and currently owns and operates three company-owned Chocolate Fish Coffee locations in California that opened in 2014, 2018, and 2020. Chocolate Fish Franchising, LLC purchased NZUS, Corp and its operating businesses on July 27, 2023, and began offering franchises in December 2023.
Financial Overview
Investment Range
$244,200 - $435,700
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$155,000
Equipment Costs (High)
$275,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Chocolate Fish Franchising is a new franchisor and has a limited operating history, which is noted as a special risk in the FDD. The company's financial statements include an audited opening balance sheet as of December 31, 2023. The independent auditor issued an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the company's financial position, operations, and cash flows. The audit report did not include any going concern qualification, meaning the auditor did not identify substantial doubt about Chocolate Fish Franchising's ability to continue as a going concern.
Financing Details
Chocolate Fish Franchising does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations of its franchisees.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Chocolate Fish Franchising has no litigation history to report. The FDD explicitly states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
Chocolate Fish Franchising has no bankruptcy information to report for the company or its key personnel. Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Chocolate Fish Coffee franchisees must provide advance written notice to the franchisor, be in full compliance with all their contractual obligations, renovate their business to meet the franchisor's then-current standards, sign the franchisor's current standard franchise agreement and related documents (including a personal guaranty), and sign a general release of any claims against the franchisor.
Training & Support Program
Franchisor Assistance
Before a Chocolate Fish Coffee business opens, the franchisor assists with reviewing and advising on potential locations, provides standard building plans and specifications, offers suggested staffing levels and hiring guidelines, conducts an initial training program, advises on the market introduction plan, and provides one week of on-site opening support. After opening, Chocolate Fish Coffee provides advice and consulting on business improvement and problem-solving (by phone or electronically, with a fee for in-person support), recommends prices for products and services, suggests administrative, bookkeeping, accounting, and inventory control procedures, manages the Brand Fund, and maintains the brand's website which includes franchisee information.
Initial Training Hours
152
Training Location
Remotely, at a corporate location, and at the franchisee's location
Ongoing Support
After opening, Chocolate Fish Coffee offers ongoing support to franchisees through advice and consulting on improving and developing their business and resolving operational issues, which can be provided by telephone or electronic communication (in-person support incurs an additional fee). The franchisor also provides recommended pricing for products and services, suggests administrative, bookkeeping, accounting, and inventory control procedures, manages the Brand Fund, and maintains the brand's website, which includes information about the franchisee's location.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Chocolate Fish Coffee territories are defined to have a population of approximately 40,000 people. These territories are usually specified as a radius around the business location, but the franchisor may use other boundaries such as county lines, streets, geographical features, or trade areas. If a territory is not explicitly defined in writing after the business opens, it will be deemed to include the zip code of the franchised business and surrounding zip codes, totaling a population of 40,000.
Staffing Notes
Chocolate Fish Coffee provides suggested staffing levels and guidelines for hiring employees, as well as operational instructions in its manual that can be used for training new staff. The business must always be under the on-site supervision of the Principal Executive (who must own at least 10% of the business) or a general manager who has completed the franchisor's training program. The franchisor may also set minimum qualifications for employee categories and requires personnel to provide competent and courteous service and adhere to dress code, appearance, and hygiene standards. All hiring decisions and employment conditions remain the sole responsibility of the franchisee.