Is a Crown Gold Exchange franchisee restricted to selling only approved goods and services?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
"Approved Vendor" means a supplier, vendor, or distributor of Inputs which has been approved by Crown Gold Franchising.
"Input" means any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business.
"Required Vendor" means a supplier, vendor, or distributor of Inputs which Crown Gold Franchising requires franchisees to use.
8.3 Alternate Input Approval. If Crown Gold Franchising requires Franchisee to purchase a particular Input, and Franchisee desires to purchase an alternate to the Input, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Crown Gold Franchising. Crown Gold Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
8.4 Purchasing. Crown Gold Franchising may negotiate prices and terms with vendors on behalf of the System. Crown Gold Franchising may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees. Crown Gold Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program. Crown Gold Franchising may implement a centralized purchasing system. Crown Gold Franchising may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Crown Gold Franchising may determine.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 29)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, franchisees may be required to purchase certain goods and services from approved or required vendors. An "Approved Vendor" is defined as a supplier, vendor, or distributor of Inputs which has been approved by Crown Gold Franchising. A "Required Vendor" is a supplier, vendor, or distributor of Inputs which Crown Gold Franchising requires franchisees to use. "Input" means any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business.
If a Crown Gold Exchange franchisee wants to purchase an alternate Input instead of what Crown Gold Franchising requires, the franchisee must submit a written request for approval with any information, specifications, and/or samples requested by Crown Gold Franchising. Crown Gold Franchising will then provide written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of the franchisee's request.
Crown Gold Exchange may negotiate prices and terms with vendors on behalf of the System and may receive rebates, payments, or other consideration from vendors in connection with franchisee purchases. Crown Gold Exchange has the right to collect payments from franchisees on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program and may implement a centralized purchasing system or establish a purchasing cooperative that franchisees may be required to join.