When are the franchise fees due for a Multi-Unit Development Agreement with Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crown Gold Franchising. The Initial Franchise Fee is non-refundable.
- 2. Form of Agreement. For Store #1, Franchisee and Crown Gold Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crown Gold Exchange franchise, Franchisee shall execute Crown Gold Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Crown Gold Exchange business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Crown Gold Exchange business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Crown Gold Exchange business.
Source: Item 5 — INITIAL FEES (FDD pages 9–10)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the total initial franchise fee for a Multi-Unit Development Agreement (MUDA) is due upon the execution of the MUDA. The FDD specifies that the initial franchise fee is non-refundable.
For the first store under the MUDA, the franchisee and Crown Gold Exchange will execute a Franchise Agreement simultaneously with the MUDA. For each additional Crown Gold Exchange franchise, the franchisee must execute Crown Gold Exchange's then-current standard form of franchise agreement no later than three business days after leasing or acquiring a location.
It is important to note that the MUDA itself does not grant the franchisee the right to construct, open, or operate a Crown Gold Exchange business. These rights are granted only through separate franchise agreements executed for each individual Crown Gold Exchange business as per the MUDA.