What is the dependency for Crown Gold Exchange to approve or disapprove a proposed site?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. Your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–24)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange FDD, the approval or disapproval of a proposed site is dependent on the franchisee providing all required information and documents about the site to Crown Gold Exchange. The FDD states that the site is subject to Crown Gold Exchange's approval, and to obtain this approval, the franchisee must submit all necessary information and documents.
Crown Gold Exchange will consider several factors when evaluating a potential site. These factors include the general location and neighborhood, the level of competition, trade area demographics, traffic patterns, parking availability, the size and physical characteristics of existing buildings, and the lease terms associated with the site.
Crown Gold Exchange has a 30-day window to either approve or disapprove the proposed site after receiving all the required documents and information from the franchisee. If the franchisee and Crown Gold Exchange cannot agree on a site, the franchisee will not be able to fulfill their obligation to develop and open the franchise by the deadline specified in the franchise agreement, potentially leading to a default and termination of the agreement unless an extension is granted.