Is a Crown Gold Exchange franchisee allowed to sell services outside of their physical premises?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
e Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Crown Gold Franchising grants to Franchisee the right to operate a Crown Gold Exchange business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Crown Gold Exchange business at the Location for the entire term of this Agreement.
- 2.2 Protected Territory. Crown Gold Franchising shall not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Crown Gold Exchange business.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 29)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Crown Gold Exchange franchisees are generally required to operate their businesses solely at an approved location. The franchise agreement grants the franchisee the right to operate a Crown Gold Exchange business specifically at the designated location. The franchisee is expected to develop, open, and operate the business at this location for the entire term of the agreement.
Crown Gold Exchange retains the right to sell and license others to sell products and services in the franchisee's territory through other channels of distribution, including the internet, which means that while the franchisee is restricted to a physical location, Crown Gold Exchange itself is not.
Furthermore, the franchisee is prohibited from engaging in any business or activity at the location other than the operation of the Crown Gold Exchange business. The franchisee also cannot use the business's assets for any purpose other than the business itself. If the franchisee is an entity, that entity cannot own or operate any other business except for other Crown Gold Exchange businesses. This reinforces the restriction to the approved location and the specific business activities authorized under the franchise agreement.