What are a Crown Gold Exchange franchisee's obligations upon termination or non-renewal of the franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | ||
| proprietary items; notify phone, internet, and | ||
| other providers and transfer service; cease | ||
| doing business; remove identification; | ||
| purchase option by us. | ||
| r. Non-competition | For two years, neither you, any owner of the | |
| covenants after the | ||
| franchise is terminated or | ||
| expires | business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor located within five miles of your former territory or the territory of any other Crown Gold Exchange business operating on the date of termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 29–33)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, upon termination or non-renewal of the franchise agreement, a franchisee has specific obligations. These include paying all outstanding amounts owed to Crown Gold Exchange. The franchisee must also return the operations manual and any other proprietary items belonging to the franchisor.
Additionally, the franchisee is required to notify all phone, internet, and other service providers of the termination or non-renewal and transfer the service as directed by Crown Gold Exchange. The franchisee must cease conducting business under the Crown Gold Exchange brand and remove all identification and branding from the business location.
Finally, it's important to note that Crown Gold Exchange retains the option to purchase the franchisee's business upon termination or non-renewal. Furthermore, for two years after termination or expiration, the franchisee, any owner of the business, or any spouse of an owner is prohibited from having an ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by a competitor located within five miles of the former territory or the territory of any other Crown Gold Exchange business operating on the date of termination.