What is the definition of 'Territory' in relation to a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- “Territory” means the territory stated on the Location Acceptance Letter.
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 Crown Gold Exchange's 2024 Franchise Disclosure Document, the 'Territory' granted to a franchisee is defined in the Location Acceptance Letter. This letter is issued by Crown Gold Franchising when they accept the franchisee's proposed location. The Location Acceptance Letter will state both the Location and the Territory.
Crown Gold Franchising determines the Territory at their discretion, guided by Item 12 of the Franchise Disclosure Document. However, if Crown Gold Franchising fails to define the Territory in writing within 60 days after the franchisee opens for business, the Territory will default to the zip code of the franchised business location and the surrounding zip codes, encompassing a total population of 50,000.
It is important for a prospective Crown Gold Exchange franchisee to understand the implications of this definition. The Territory defines the area where the franchisee may have certain protections against direct competition from other Crown Gold Exchange franchises. The franchisee should carefully review the Location Acceptance Letter and Item 12 of the FDD to fully understand the extent of their protected territory and any limitations or conditions that may apply.