Does Crown Gold Exchange grant an exclusive territory in the franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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Territory Protection
In your franchise agreement, we grant you an exclusive territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Crown Gold Exchange outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
If you sign a MUDA, you will receive an exclusive territory as an area developer. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Crown Gold Exhange outlet. The continuation of your territorial exclusivity depends on your adherence to the development schedule stated in the MUDA. If you fail to adhere to the development schedule, we will have the right to terminate your MUDA, but not any franchise agreements that are already signed.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Source: Item 12 — TERRITORY (FDD pages 24–26)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the franchise agreement grants franchisees an exclusive territory. Crown Gold Exchange will not establish company-owned or franchised outlets selling similar goods or services under the same trademarks within the franchisee's territory. The continuation of this territorial protection does not depend on achieving specific sales volumes or market penetration. However, there are no restrictions on Crown Gold Exchange from soliciting or accepting orders from consumers inside the franchisee's territory through other channels of distribution, such as the internet or telemarketing.
For franchisees who sign a Multi-Unit Development Agreement (MUDA), they will also receive an exclusive territory as an area developer. However, the continuation of this territorial exclusivity depends on adhering to the development schedule outlined in the MUDA. Failure to meet the development schedule gives Crown Gold Exchange the right to terminate the MUDA, but not any franchise agreements that are already signed.
The territory size is determined by Crown Gold Exchange and will generally be documented as a 50,000-population center or a 5-mile radius from the location, whichever is less. Territories are mapped based on individual market circumstances, using market research and the most recent available census data. Franchisees do not have the right to relocate their business, and Crown Gold Exchange has no obligation to approve any relocation request, though relocation may be approved on a case-by-case basis.