Does the Crown Gold Exchange Franchise Agreement include a Guaranty and Non-Compete Agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
-------------------------------------------| | | This Location Acceptance Letter is issued by Goldmember, LLC | | | for your Crown Gold Exchange | | | franchise in accordance with Section 6.1 of the Franchise Agreement. | | 1. | The Location of the Business is: | | 2. | The Territory of the Business is: | | | GOLDMEMBER, LLC | | | By: | | | Name: | | | Title: | | | Date: |
Attachment 3 to Franchise Agreement
GUARANTY AND NON-COMPETE AGREEMENT
This Guaranty and Non-Compete Agreement (this "Guaranty") is executed by the undersigned person(s) (each, a "Guarantor") in favor of Goldmember, LLC, a Idaho limited liability company ("Crown Gold Franchising").
| Franchise Agreement | for the franchise of a Crown Gold Exchange | |--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------| | with Crown Gold Franchising | business (the "Franchise Agreement"; capitalized terms used but not defined in this Guaranty have | | the meanings given in the Franchise Agreement). | Guarantor owns an equity interest in Franchisee. | | Guarantor is executing this Guaranty in order to induce Crown Gold Franchising | to enter into the | | Franchise Agreement. | | Guarantor agrees as follows:
- 1. Guaranty. Guarantor hereby unconditionally guarantees to Crown Gold Franchising and its successors and assigns that Franchisee shall pay and perform every undertaking, agreement and covenant set forth in the Franchise Agreement and further guarantees every other liability and obligation of Franchisee to Crown Gold Franchising, whether or not contained in the Franchise Agreement. Guarantor shall render any payment or performance required under the Franchise Agreement or any other agreement between Franchisee and Crown Gold Franchising upon demand from Crown Gold Franchising. Guarantor waives (a) acceptance and notice of acceptance by Crown Gold Franchising of this Guaranty; (b) notice of demand for payment of any indebtedness or nonperformance of any obligations of Franchisee; (c) protest and notice of default to any party with respect to the indebtedness or nonperformance of any obligations hereby guaranteed; (d) any right Guarantor may have to require that an action be brought against Franchisee or any other person or entity as a condition of liability hereunder; (e) all rights to payments and claims for reimbursement or subrogation which any of the undersigned may have against Franchisee arising as a result of the execution of and performance under this Guaranty by the undersigned; (f) any law which requires that Crown Gold Franchising make demand upon, assert claims against or collect from Franchisee or any other person or entity (including any other guarantor), foreclose any security interest, sell collateral, exhaust any remedies or take any other action against Franchisee or any other person or entity (including any other guarantor) prior to making any demand upon, collecting from or taking any action against the undersigned with respect to this Guaranty; and (g) any and all other notices and legal or equitable defenses to which Guarantor may be entitled.
- 2. Confidential Information. With respect to all Confidential Information Guarantor shall (a) adhere to all security procedures prescribed by Crown Gold Franchising for maintaining confidentiality, (b) disclose such information to its employees only to the extent necessary for the operation of the Business;
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the Franchise Agreement does include a Guaranty and Non-Compete Agreement. Attachment 3 to the Franchise Agreement is titled "GUARANTY AND NON-COMPETE AGREEMENT". If the franchisee is an entity, each owner must sign a personal guaranty of the franchisee's obligations to Crown Gold Franchising, utilizing the form provided as Attachment 3.
The Guaranty ensures that the guarantor unconditionally guarantees that the franchisee will fulfill every commitment outlined in the Franchise Agreement, as well as any other obligations the franchisee owes to Crown Gold Franchising. The guarantor must make any payment or performance required under the Franchise Agreement upon demand from Crown Gold Franchising and waives certain rights, including the right to require Crown Gold Franchising to first pursue action against the franchisee before demanding payment from the guarantor.
The Non-Compete Agreement restricts the guarantor from engaging with any competitor during the term of the Franchise Agreement. This means the guarantor cannot have any ownership interest in, lend money to, provide services to, or be employed by any competitor. After the Franchise Agreement expires or is terminated, the guarantor is restricted for two years from similar competitive activities within five miles of the franchisee's territory or any other Crown Gold Exchange business. If the territory hasn't been determined before termination, the non-competition area will be the Development Area and the territory of any other Crown Gold Exchange business operating on the date of termination.
Crown Gold Exchange also requires franchisees to ensure that their general manager and other key employees sign a confidentiality and non-compete agreement, unless prohibited by law. Franchisees must also represent that they and their owners are not violating any existing agreements, including confidentiality or non-competition covenants, by entering into the Crown Gold Exchange Franchise Agreement.