Is a Multi-Unit Development Agreement included as an exhibit for the Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
Issuance Date: June 4th, 2024
I received a disclosure document that included the following Exhibits:
- A. State Addenda to Disclosure Document
- B. Franchise Agreement (with State Addenda to Agreements, Guaranty and Non-Compete Agreement, Rider to Lease Agreement, and Form of General Release)
- C. Multi-Unit Development Agreement
- D. Item 21 Financial Statements
- E. State Administrators and Agents for Service of Process
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, a Multi-Unit Development Agreement (MUDA) is included as an exhibit. Specifically, Exhibit C is the Multi-Unit Development Agreement. This agreement outlines the terms and conditions under which a franchisee can develop multiple Crown Gold Exchange businesses.
The MUDA includes several key provisions. It states that upon execution of the MUDA, the franchisee must pay the total Initial Franchise Fee, which is non-refundable. The franchisee and Crown Gold Franchising execute the Franchise Agreement simultaneously with the MUDA for the first store. For each additional franchise, the franchisee must execute Crown Gold Franchising's current standard franchise agreement within three business days of leasing or acquiring a location. The MUDA does not grant the right to operate a Crown Gold Exchange business; a separate franchise agreement is required for each location.
The agreement also specifies that the franchisee must develop and open Crown Gold Exchange businesses according to a set schedule. The franchisee is granted exclusive rights to develop, open, or operate Crown Gold Exchange businesses within a defined Development Area while the agreement is in effect. However, the right to develop each franchise after the first store is contingent on the franchisee maintaining sufficient financial and organizational capacity and remaining in full compliance with all brand requirements and agreements.
Crown Gold Franchising can terminate the MUDA if the franchisee fails to meet the development schedule or defaults under any franchise agreement. However, the franchisee's commitment is considered an option, and if the MUDA is terminated due to the franchisee's default, the franchisee is not liable for lost future revenues or profits from unopened businesses. The franchisee also has the right to terminate the MUDA at any time. All owners of the franchise will be required to execute personal guarantees. This requirement places the marital assets of the spouses domiciled in community property states – AZ, CA, ID, LA, NV, NM, TX, WA and WI – at risk if your franchise fails.