What is the dependency between finding a location and the development area for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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 franchisee must first find a potential location within the development area outlined on the Summary Page. This proposed location must then be submitted to Crown Gold Franchising for acceptance, along with any related information the franchisor requests. If Crown Gold Franchising does not provide written acceptance within 30 days, the location is considered rejected.
Upon acceptance of the location, Crown Gold Franchising will issue a Location Acceptance Letter, which specifies both the location and the territory granted to the franchisee. The franchisor determines the territory at its discretion, generally following the guidelines in Item 12 of the Franchise Disclosure Document. If the territory is not defined in writing within 60 days after the business opens, the territory will default to the zip code of the franchised business and the surrounding zip codes, encompassing a total population of 50,000.
This process highlights the importance of securing franchisor approval for the location before proceeding with development. The franchisee's development area dictates where they can propose a location, and the franchisor's acceptance of that location determines the franchisee's territory. This ensures that Crown Gold Exchange maintains control over market distribution and brand consistency.