How long is the initial term of the Crown Gold Exchange franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Crown Gold Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Crown Gold Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Crown Gold Franchising) renovations and changes to the Business as Crown Gold Franchising requires (including a Remodel, if applicable) to conform to the thencurrent System Standards;
- (iv) Franchisee and its Owners execute Crown Gold Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Crown Gold Franchising's then-standard form) of any and all claims against Crown Gold Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the initial term of the franchise agreement is 10 years, commencing on the effective date, which is the date the agreement is signed by Crown Gold Franchising.
At the end of the initial 10-year term, a franchisee has the option to enter into a successor agreement. To do so, the franchisee must notify Crown Gold Franchising of their election to renew between 90 and 180 days before the end of the current term. The franchisee must also be in compliance with the existing agreement and any other agreements with Crown Gold Franchising.
To renew, Crown Gold Exchange may require franchisees to make renovations to conform to the then-current system standards. The franchisee will need to execute Crown Gold Franchising's current standard form of franchise agreement, which may include different fees. However, the franchisee will not pay another initial franchise fee. Finally, the franchisee must execute a general release of any claims against Crown Gold Franchising.