How is the 'Business' defined within the Crown Gold Exchange franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ising (the "Effective Date").
Background Statement:
- A. Crown Gold Franchising and its affiliate WAM Gold LLC have created and own a system (the "System") for developing and operating a one stop shop where customers can sell their gold, silver, diamonds or coins at a reasonable price under the trade name "Crown Gold Exchange".
- B. The System includes (1) methods, procedures, and standards for developing and operating a Crown Gold Exchange business, (2) plans, specifications, equipment, signage and trade dress for Crown Gold Exchange businesses, (3) particular products and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by Crown Gold Franchising from time to time.
- C. The parties desire that Crown Gold Franchising license the Marks and the System to Franchisee for Franchisee to develop and operate a Crown Gold Exchange business on the terms and conditions of this Agreement.
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, judgment or appeal thereof, whether formal or informal.
- "Approved Vendor" means a supplier, vendor, or distributor of Inputs which has been approved by Crown Gold Franchising.
- "Business" means the Crown Gold Exchange business owned by Franchisee and operated under this Agreement.
- "Competitor" means any business which offers gold retail services from a retail space where you are buying and selling gold products to customers.
- "Confidential Information" means all non-public information of or about the System, Crown Gold Franchising, and any Crown Gold Exchange business, including all methods for developing and operating the Business, and all non-public plans, data, financial information, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information and know-how.
- "Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the 'Business' refers to the Crown Gold Exchange business that the franchisee is authorized to develop and operate. Crown Gold Exchange grants the franchisee the right to operate this business solely at an approved location. The franchisee is obligated to develop, open, and operate the Crown Gold Exchange business at this location for the entire term of the Franchise Agreement.
The Crown Gold Exchange system, which the franchisee will utilize, includes methods, procedures, and standards for operating a one-stop shop where customers can sell gold, silver, diamonds, or coins at reasonable prices. This system encompasses various elements such as business operation methods, plans, specifications, equipment, signage, trade dress, specific products and services, the brand's trademarks, training programs, business knowledge, and marketing plans.
All customer data and other non-public data generated by the Crown Gold Exchange business is considered confidential information and is exclusively owned by Crown Gold Franchising. However, Crown Gold Franchising licenses this data back to the franchisee for use in connection with the business during the term of the agreement. Franchisees are also required to disclose any ideas, plans, improvements, concepts, methods, and techniques related to the business, as Crown Gold Franchising will automatically own these innovations and have the right to incorporate them into the system without compensating the franchisee.