Caribou Coffee Development Company, Inc., the franchisor, offers franchises for the operation of Caribou Coffee coffeehouses that sell coffees, teas, baked goods, sandwiches, and other beverage and food products from kiosk style locations within a host facility, such as shopping malls, strip shopping centers, public transportation facilities, convention centers, grocery stores, university food courts, movie theaters, health clubs, hospitals and similar venues.
Some Coffeehouses will not operate as a typical kiosk style Coffeehouse but instead will operate as a stand-alone Coffeehouse. Caribou Coffee Company, Inc. (CCC) is the franchisor’s immediate parent company and predecessor.
For each Coffeehouse, franchisees must designate at least one individual who will be trained as Certified Managers for the Coffeehouse, and who must attend and successfully complete the Certified Manager Training Program. The individual must be responsible for the daily operations of the Coffeehouse and oversee the training of Coffeehouse personnel.
The individual franchisees send to training must successfully complete the training program (including passing operations and proficiency tests) to the franchisor’s satisfaction, and upon successful completion, will be designated as a “Certified Manager.” The Certified Manager training program runs for up to 14 days. The training will take place at the franchisor’s training center in Minneapolis, Minnesota, or at a certified training store that it designates.
At the franchisee’s request or if the franchisor otherwise determines, the franchisor will send an “opening team” of up to two people (the franchisor determines the specific number) to the Coffeehouse for one week before opening and continuing for one week after opening. The franchisor may require franchisees, at their expense, to send their Certified Managers to other training courses it conducts and deems necessary for the maintenance of the Certified Manager designation at the reasonable times and locations that it designates.
Franchisees may request additional on-site training assistance or guidance from the franchisor for a fee per assistant per day, plus the franchisor assistant’s reasonable travel, hotel, and living expenses.
If franchisees will operate a kiosk style Coffeehouse, their location must be located within a Host facility that the franchisor approves, and the franchisor must approve the specific site of the Coffeehouse within the Host facility. If franchisees operate a kiosk style Coffeehouse, their rights under the License Agreement are non-exclusive and they receive no protected territory.
If franchisees operate a Stand-Alone Coffeehouse and are complying with the License Agreement, neither the franchisor nor its affiliates will directly operate, or license or franchise other persons to operate, any other Coffeehouse within a 1/4 mile radius of the Coffeehouse License Agreement.
This Protected Territory restriction for the Stand-Alone Coffeehouse does not apply to (and the franchisor may operate or license a third party to operate) any kiosk style Coffeehouse in a Host facility or any Coffeehouse in a Captive Market Location, which is located fully or partially within the geographic boundaries of the Protected Territory.
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