What is a Crown Gold Exchange franchisee required to provide to obtain site approval?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. Your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–24)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, if a site is not already known and approved, the franchisee and Crown Gold Exchange will specify the area in which the franchisee must select a site within the franchise agreement. The franchisee's site selection is subject to Crown Gold Exchange's approval. To obtain approval, the franchisee must provide all information and documents about the site that Crown Gold Exchange requires.
The factors that Crown Gold Exchange considers when approving a site include the general location and neighborhood, competition, trade area demographics, traffic patterns, parking availability, size, physical characteristics of existing buildings, and lease terms. Crown Gold Exchange has 30 days to approve or disapprove a proposed site after the franchisee submits all required documents and information.
If the franchisee and Crown Gold Exchange cannot agree on a site, the franchisee will be unable to fulfill their obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless Crown Gold Exchange agrees to extend the deadline, the franchisee will be in default, and Crown Gold Exchange may terminate the franchise agreement.