What section of the Crab N Spice franchise agreement discusses site selection and acquisition/lease?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
- 2.1 Grant. CNS Franchising grants to Franchisee the right to operate a Crab N Spice business solely at the Location.
If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1.
Franchisee shall develop, open and operate a Crab N Spice business at the Location for the entire term of this Agreement.
[Item 12: TERRITORY]
Item 12 TERRITORY
Your Location
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject to our approval.
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right establish a mutually-agreed number of additional outlets. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crab N Spice business, (3) you must be in compliance with all brand requirements at
your open Crab N Spice business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our thencurrent standards for sites and territories will apply.
[Item 22: CONTRACTS]
Attachment 1 to Franchise Agreement
LOCATION ACCEPTANCE LETTER
To: This Location Acceptance Letter is issued by Crab N Spice Group for your Crab N Spice franchise in accordance with Section 6.1 of the Franchise Agreement. 1. The Location of the Business is: 2. The Territory of the Business is: CRAB N SPICE GROUP By: Name: Title: Date:
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 19–20)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the franchise agreement addresses site selection in Section 6.1. If a location isn't specified when the agreement is signed, the parties will determine it according to this section. Attachment 1 to the Franchise Agreement is a Location Acceptance Letter that Crab N Spice Group issues to specify the location and territory of the business, referencing Section 6.1.
Item 12 further clarifies that the franchise is for a specific location, subject to the franchisor's approval if not known at signing. While franchisees cannot relocate without approval, Crab N Spice may approve relocations on a case-by-case basis considering factors like demographics, profitability, or loss of premises.
Franchisees don't have the right to establish additional outlets unless they sign a Multi-Unit Development Agreement (MUDA). If a MUDA is in place, the franchisee can establish an agreed-upon number of additional outlets, subject to compliance with a development schedule, sufficient financial capacity, adherence to brand requirements, and absence of default under any agreement with Crab N Spice. The franchisor must approve the location of future sites, applying their current standards for sites and territories.