If I sign a Multi-Unit Development Agreement with Crown Gold Exchange, what am I obligated to do?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually-agreed number of additional outlets on a mutually-agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Crown Gold Exchange business, (3) you must be in compliance with all brand requirements at your open Crown Gold Exchange business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–8)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, if you sign a Multi-Unit Development Agreement (MUDA) with Crown Gold Exchange, you gain the right to establish a mutually-agreed number of additional outlets based on a mutually-agreed schedule. However, this right is contingent upon several factors.
First, you must adhere to the development schedule outlined in the MUDA. Second, you need to demonstrate sufficient financial and organizational capacity to successfully develop, open, operate, and manage each additional Crown Gold Exchange business. Third, you must maintain compliance with all brand requirements at your existing Crown Gold Exchange businesses. Finally, you must not be in default under any other agreement with Crown Gold Exchange.
Crown Gold Exchange retains the right to approve the locations and territories for these future sites, ensuring that their then-current standards for sites and territories are met. While you are not obligated to develop additional outlets under the MUDA and can terminate it at any time without penalty, Crown Gold Exchange has the right to terminate your right to develop additional outlets if you fail to meet the agreed-upon development schedule.