How is the 'Location' of a Crown Gold Exchange franchise defined?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Location" means the location stated on the Location Acceptance Letter.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Crown Gold Franchising grants to Franchisee the right to operate a Crown Gold Exchange business solely at the Location.
If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1.
Franchisee shall develop, open and operate a Crown Gold Exchange business at the Location for the entire term of this Agreement.
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
6.1 Determining Location and Territory
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Crown Gold Franchising for acceptance, with all related information Crown Gold Franchising may request. If Crown Gold Franchising does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (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.
- 6.3 Development. Franchisee shall construct (or remodel) and finish the Location in conformity with Crown Gold Franchising's System Standards.
5.4 Pre-Opening Assistance.
- (a) Selecting Location. Crown Gold Franchising shall provide its criteria for Crown Gold Exchange locations to Franchisee. Crown Gold Franchising will review and advise Franchisee regarding potential locations submitted by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the 'Location' is defined as the location stated on the Location Acceptance Letter. The franchisee is granted the right to operate a Crown Gold Exchange business solely at this specified location. The franchisee is obligated to develop, open, and operate the Crown Gold Exchange business at the Location for the entire term of the Franchise Agreement.
If the specific Location is not stated on the Summary Page when the Franchise Agreement is initially signed, the parties will determine the Location later according to Section 6.1 of the agreement. This section outlines the process for finding and securing an acceptable site. The franchisee is responsible for finding a potential Location within the Development Area outlined on the Summary Page and submitting it to Crown Gold Franchising for approval, along with any related information requested by Crown Gold Franchising. Crown Gold Franchising has 30 days to either accept or reject the proposed location in writing.
Once Crown Gold Franchising accepts the proposed Location, they will issue a Location Acceptance Letter, which officially states both the Location and the Territory granted to the franchisee. The Territory is determined by Crown Gold Franchising in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Crown Gold Franchising fails to specify the Territory in writing within 60 days after the franchisee opens the Business to the public, the Territory will default to the zip code containing the franchised business location and the immediately surrounding zip codes, encompassing a total population of 50,000.
Crown Gold Franchising also provides criteria for selecting Crown Gold Exchange locations and will review and advise the franchisee regarding potential locations submitted. The franchisee is required to construct (or remodel) and finish the Location in accordance with Crown Gold Franchising's System Standards. Franchisees may be required to engage the services of a licensed architect and must obtain Crown Gold Franchising's approval of their plans before starting any construction or remodeling work. Crown Gold Franchising has the option, but not the obligation, to inspect the construction or remodeling progress at any reasonable time.