What is a Crown Gold Exchange franchisee required to do if they lease the location for their Crown Gold Exchange business?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Crown Gold Franchising, Franchisee must submit the proposed lease to Crown Gold Franchising for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Crown Gold Franchising.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, if a franchisee chooses to lease their business location, they have specific obligations to Crown Gold Franchising. First, if Crown Gold Franchising requests it, the franchisee must submit the proposed lease agreement for written approval. This gives Crown Gold Franchising the opportunity to review the lease terms and ensure they align with the brand's interests and standards.
Second, the lease term, including any renewal options, must be no shorter than the term of the Franchise Agreement itself. This ensures that the franchisee has control of the location for the entire duration of their franchise agreement with Crown Gold Exchange.
Finally, the franchisee must use commercially reasonable efforts to get the landlord to sign a rider to the lease, using a form required by Crown Gold Franchising. A lease rider is a separate document that modifies or adds to the original lease agreement. This requirement allows Crown Gold Franchising to include specific provisions in the lease that protect its interests and ensure the location meets its standards.