Besides the Franchise Agreement, what other agreements are included in the Crown Gold Exchange Disclosure Document?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
EXHIBIT C
MULTI-UNIT DEVELOPMENT AGREEMENT
| This Multi-Unit Development Agreement (this "MUDA") is made between Goldmember, LLC, a | |
|---|---|
| Idaho | |
| limited liability company | |
| ("Crown Gold Franchising") and, a | |
| ("Franchisee") on the Effective Date. |
Background Statement: On the same day as they execute this MUDA, Crown Gold Franchising and Franchisee have entered into a Franchise Agreement for the franchise of a Crown Gold Exchange business (the "Franchise Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). Crown Gold Franchising and Franchisee desire that Franchisee develop multiple Crown Gold Exchange businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Crown Gold Exchange businesses on the following schedule:
| Store # | Deadline for Opening | Total # of Stores to be Open and Operating on Deadline | Initial Franchise Fee |
|---|---|---|---|
| 1 | 1 | $______ | |
| 2 | 2 | $______ | |
| 3 | 3 | $______ | |
| 4 | 4 | $______ | |
| 5 | 5 | $______ | |
| Total Initial Franchise Fee: |
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crown Gold Franchising. The Initial Franchise Fee is non-refundable.
- 2. Form of Agreement. For Store #1, Franchisee and Crown Gold Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crown Gold Exchange franchise, Franchisee shall execute Crown Gold Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Crown Gold Exchange business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Crown Gold Exchange business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Crown Gold Exchange business.
| 3. Development Area. Franchisee shall locate each Crown Gold Exchange business it |
|---|
| develops under this MUDA within the following area: |
| (the "Development Area"). Franchisee will |
| have exclusive rights to develop, open |
| or operate Crown Gold Exchange |
| businesses in the Development Area |
| while this agreement is in |
| effect. |
- 4. Default and Termination. Crown Gold Franchising may terminate this MUDA by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee fails to satisfy the development schedule; or
- (ii) Crown Gold Franchising has the right to terminate any franchise agreement between Crown Gold Franchising and Franchisee (or any affiliate thereof) due to Franchisee's default thereunder (whether or not Crown Gold Franchising actually terminates such franchise agreement).
- 5. Limitation of Liability. Franchisee's commitment to develop Crown Gold Exchange businesses is in the nature of an option only. If Crown Gold Franchising terminates this MUDA for Franchisee's default, Franchisee shall not be liable to Crown Gold Franchising for lost future revenues or profits from the unopened Crown Gold Exchange businesses. Franchisee may terminate this MUDA at any time.
- **6.
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, a Multi-Unit Development Agreement (MUDA) is included.
The MUDA outlines the franchisee's commitment to developing multiple Crown Gold Exchange businesses according to a specific schedule. It stipulates that upon execution of the MUDA, the franchisee must pay the total Initial Franchise Fee to Crown Gold Franchising, which is non-refundable. The MUDA does not grant the franchisee the right to construct, open, or operate a Crown Gold Exchange business; these rights are secured through separate franchise agreements executed for each additional business.
The MUDA includes conditions regarding the franchisee's financial and organizational capacity to manage each additional Crown Gold Exchange business, as well as compliance with brand requirements and adherence to all agreements with Crown Gold Franchising. Crown Gold Franchising can terminate the MUDA if the franchisee fails to meet the development schedule or defaults on any franchise agreement. However, if Crown Gold Franchising terminates the MUDA due to the franchisee's default, the franchisee is not liable for lost future revenues or profits from unopened Crown Gold Exchange businesses, and the franchisee can terminate the MUDA at any time.
The MUDA incorporates the dispute resolution and miscellaneous provisions from the Franchise Agreement. It is governed by the laws of Idaho, and the franchisee cannot transfer the MUDA without prior written consent from Crown Gold Franchising. For the initial store, the Franchise Agreement is executed simultaneously with the MUDA, while subsequent Crown Gold Exchange franchises require the franchisee to execute Crown Gold Franchising's current standard franchise agreement within three business days of securing a location.