How does Crown Gold Franchising determine the Territory for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchisee's location (or territory) and telephone number.
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
6.1 Determining Location and Territory
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Crown Gold Franchising for acceptance, with all related information Crown Gold Franchising may request. If Crown Gold Franchising does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Crown Gold Franchising accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Crown Gold Franchising shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Crown Gold Franchising fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and the zip codes which immediately surround the location and together comprise a total of 50,000 population.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the franchisee is responsible for finding a potential location within the development area outlined on the Summary Page. The franchisee must then submit this proposed location, along with any related information requested, to Crown Gold Franchising for approval. If Crown Gold Franchising does not provide written acceptance within 30 days, the location is considered rejected.
Upon accepting the location, Crown Gold Franchising will issue a Location Acceptance Letter, which includes both the location and the territory granted to the franchisee. Crown Gold Franchising determines the territory at its discretion, acting in good faith and substantially following the guidelines in Item 12 of the Franchise Disclosure Document.
However, if Crown Gold Franchising fails to define the territory in writing within 60 days after the Crown Gold Exchange business opens to the public, the territory will default to the zip code containing the franchise location and all immediately surrounding zip codes, encompassing a total population of 50,000 residents. This default definition provides a minimum territory size if the franchisor does not act promptly. The Territory is defined as the territory stated on the Location Acceptance Letter.