How does Crown Gold Exchange determine the territory granted in the franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
proval.
Grant of Territory
Your franchise agreement will specify a territory, which will be determined by us. The territory will include a defined area and will generally be documented as a 50,000-population
center or a 5-mile radius from the location, whichever is less. Territories will be mapped based on the individual market circumstances for each unit sold. We will map out an area based on market research and the most recent available census data to come to territory modeling conclusions.
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
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.
Source: Item 12 — TERRITORY (FDD pages 24–26)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the franchise agreement will specify a territory determined by Crown Gold Exchange. This territory typically includes a defined area, generally documented as either a 50,000-population center or a 5-mile radius from the location, whichever is less.
The territory modeling is based on individual market circumstances for each unit sold. Crown Gold Exchange uses market research and the most recent available census data to determine the territory.
If the specific location is not known when signing the franchise agreement, the location is subject to Crown Gold Exchange's approval. Once Crown Gold Exchange accepts the location, they will issue a Location Acceptance Letter stating the Location and Territory. If Crown Gold Exchange fails to state the Territory in writing within 60 days after the 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.