What should a Crown Gold Exchange franchisee do if an item used in their business is recalled?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.6 Product Recalls. If Crown Gold Franchising or any vendor, supplier, or manufacturer of an item used or sold in Franchisee's Business issues a recall of such item or otherwise notifies Franchisee that such item is defective or dangerous, Franchisee shall immediately cease using or selling such item, and Franchisee shall at its own expense comply with all instructions from Crown Gold Franchising or the vendor, supplier, or manufacturer of such item with respect to such item, including without limitation the recall, repair, and/or replacement of such item.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, if Crown Gold Franchising or any vendor, supplier, or manufacturer issues a recall of an item used or sold in the franchisee's business, or notifies the franchisee that an item is defective or dangerous, the franchisee must immediately stop using or selling the item.
Furthermore, the Crown Gold Exchange franchisee is responsible for complying with all instructions from Crown Gold Franchising, the vendor, supplier, or manufacturer regarding the item. This includes, without limitation, the recall, repair, and/or replacement of the item.
This clause places the onus on the franchisee to act swiftly and decisively in the event of a product recall, and to bear the costs associated with complying with recall instructions. Franchisees should be prepared for the possibility of incurring expenses related to recalls, repairs, or replacements, and should factor this potential liability into their business planning.