Is a Crown Gold Exchange franchisee required to submit documents related to litigation?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
0 days after the end of Crown Gold Franchising's fiscal year; and
- (iii) any information Crown Gold Franchising requests in order to prepare a financial performance representation for Crown Gold Franchising's franchise disclosure document.
- (b) Legal Actions and Investigations. Franchisee shall promptly notify Crown Gold Franchising of any Action or threatened Action by any customer, governmental authority, or other third party against Franchisee or the Business, or otherwise involving the Franchisee or the Business. Franchisee shall provide such documents and information related to any such Action as Crown Gold Franchising may request.
- (c) Government Inspections.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees are required to submit documents related to litigation. Specifically, franchisees must promptly inform Crown Gold Franchising of any action or threatened action by a customer, governmental authority, or other third party against the franchisee or the business.
Furthermore, the franchisee is obligated to provide any documents and information related to such actions as Crown Gold Franchising may request. This includes not only legal actions but also investigations involving the franchisee or the business.
In addition to legal actions, franchisees must also submit other documents and information related to the business as specified in the manual or as Crown Gold Franchising may reasonably request. This encompasses financial statements, budgets, forecasts, reports, records, copies of contracts, tax returns, copies of governmental permits, and other pertinent documents.