For a Crown Gold Exchange franchise, is the franchise granted for a specific location?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
2 TERRITORY**
Your Location
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject to our approval.
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. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
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 is granted for a specific location. The franchise agreement will specify a territory, determined by Crown Gold Exchange, generally documented as a 50,000-population center or a 5-mile radius from the location, whichever is less. The territories are mapped based on individual market circumstances, using market research and census data to model the territory.
Crown Gold Exchange franchisees do not have the right to relocate their business, and Crown Gold Exchange has no obligation to approve any request for relocation. However, Crown Gold Exchange's policy is to approve relocation on a case-by-case basis, considering factors like changes in demographics, profitability, or loss of premises due to circumstances beyond the franchisee's control.
Furthermore, franchisees do not have the right to establish additional franchised outlets unless they sign a Multi-Unit Development Agreement (MUDA). If a MUDA is signed, the franchisee has the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule, subject to certain conditions, including compliance with the development schedule, sufficient financial and organizational capacity, compliance with brand requirements, and not being in default under any other agreement with Crown Gold Exchange. Crown Gold Exchange will approve the location of future sites and territories for those sites, applying their then-current standards. The franchisee is not obligated to develop additional outlets under the MUDA and may terminate it without penalty, but failure to meet the development schedule allows Crown Gold Exchange to terminate the right to develop additional outlets.