What is the condition for signing a Multi-Unit Development Agreement with Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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 to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. 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 Crown Gold Exchange business, (3) you must be in compliance with all brand requirements at your open Crown Gold Exchange 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 then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a franchisee does not have the right to establish additional franchised outlets unless they sign a Multi-Unit Development Agreement (MUDA). If a franchisee and Crown Gold Exchange sign a MUDA, the franchisee then has the right to establish a mutually agreed number of additional outlets on a mutually agreed schedule.
Under the MUDA, the franchisee's right to develop additional outlets is subject to several conditions. First, the franchisee must comply with the mutually agreed development schedule. Second, the franchisee must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crown Gold Exchange business. Third, the franchisee must be in compliance with all brand requirements at their open Crown Gold Exchange businesses. Finally, the franchisee must not be in default under any other agreement with Crown Gold Exchange.
Crown Gold Exchange will approve the location of future sites and territories for those sites, and their then-current standards for sites and territories will apply. The franchisee is not obligated to develop additional outlets under the MUDA and may terminate it at any time without penalty. However, if the franchisee does not meet their development schedule in the MUDA, Crown Gold Exchange has the right to terminate the franchisee's right to develop additional outlets.