Can a Crown Gold Exchange franchisee offset or deduct from their payments?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (g) Obligations Independent; No Set-Off. The obligations of Franchisee to pay to Crown Gold Franchising any fees or amounts described in this Agreement are not dependent on Crown Gold Franchising's performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, a franchisee's obligation to pay fees to Crown Gold Franchising is independent of the franchisor's performance. This means that franchisees are required to make all payments without any reductions or offsets.
Crown Gold Exchange requires that all payments be made without any deductions. This is a fairly standard clause in franchise agreements, ensuring a consistent revenue stream for the franchisor.
This requirement means that a Crown Gold Exchange franchisee cannot withhold payments due to any disputes or perceived failures on the part of the franchisor. The franchisee must continue to make payments as required while pursuing any separate legal remedies they may have. This arrangement favors the franchisor, as it maintains consistent cash flow and places the burden on the franchisee to actively pursue any claims for compensation or damages.