If a Crown Gold Exchange franchisee wants to purchase an alternate Input, what must they do?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ews. Crown Gold Franchising will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
- 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 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the process for purchasing an alternate Input depends on whether Crown Gold Franchising requires franchisees to purchase a particular Input. An "Input" is defined as any goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating the Business.
If Crown Gold Franchising requires franchisees to purchase a particular Input, and a franchisee desires to purchase an alternate, the franchisee must submit a written request for approval. This request must include 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 the proposed alternate Input within 30 days after receiving the franchisee's request.
If Crown Gold Franchising requires franchisees to purchase a particular Input only from an Approved Vendor or Required Vendor, and the franchisee wants to purchase the Input from another vendor, the franchisee must submit a written request for approval. Crown Gold Franchising may condition its approval on criteria such as evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews. Crown Gold Franchising will provide written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of the franchisee's request.