Where on the Location Acceptance Letter is the territory of the Crown Gold Exchange business to be indicated?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (ii) When Crown Gold Franchising accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Crown Gold Franchising shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Crown Gold Franchising fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code which includes the location of the franchised business and the zip codes which immediately surround the location and together comprise a total of 50,000 population.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the territory of the business is specified on the Location Acceptance Letter. Once a potential location is found by the franchisee within the development area and submitted to Crown Gold Franchising, the franchisor will review the proposed location. If Crown Gold Franchising accepts the location, they will issue a Location Acceptance Letter.
The Location Acceptance Letter, as stated in the FDD, will specify both the location and the territory of the Crown Gold Exchange business. The franchisor determines the territory at its discretion, following the guidelines in Item 12 of the Franchise Disclosure Document.
If Crown Gold Franchising fails to state the territory in writing within 60 days after the franchisee opens the business to the public, the territory will default to the zip code of the franchised business's location and the immediately surrounding zip codes, encompassing a total population of 50,000. This default provision provides some assurance to the franchisee regarding their territory even if the franchisor does not explicitly define it in a timely manner.