What is Crown Gold Exchange's obligation regarding the initial training program?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
We will conduct our initial training program. (Section 5.4). The current initial training program is described below.
| Subject | Hours of Classroom Training | Hours of On-The Job Training | Location |
|---|---|---|---|
| Introduction and Overview - The Industry - The Business Model - The Brand - Establishing the Location - Working together with the Franchisor | 8 | - | Our Location, Rancho Santa Margarita, CA or Your Location or Virtual |
| Operations and Management - Buying - Selling - Staffing - Customer Service - Admin - Insurance - Reporting - Technology and Systems | 8 | 40 | Our Location, Rancho Santa Margarita, CA or Your Location or Virtual |
| Marketing and Sales - Brand - Competitive Overview - Advertising and Marketing - Closing Business - Marketing Collateral and Tools | 8 | 8 | Our Location, Rancho Santa Margarita, CA or Your Location or Virtual |
| Grand Opening and Launch | 2 | 8 | Your Location |
| TOTALS: | 26 | 56 |
There is no fee for up to 2 people to attend training. You must pay the travel and living expenses of your employees or managers attending training.
You must attend training. You may send any additional persons to training that you want (up to the maximum described above). You must complete training to our satisfaction at least two weeks before opening your business. You will be required to pass a test which evaluates your understanding for the content and franchise operating content as covered in the training program. Should you fail to pass the test or complete the initial training, we have the right to terminate the franchise agreement with no refund of the initial franchise fee.
Your business must at all times be under your on-site supervision or under the on-site supervision of a general manager who has completed our training program. If you need to send a new general manager to our training program, we will charge a fee, which is currently $250 per day.
Training classes will be scheduled in accordance with the needs of new franchisees. We anticipate holding training classes in advance of the opening of the franchisee's location, doing so at our corporate office and retail locations in California
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–24)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Exchange will conduct an initial training program. The FDD states that the training program consists of classroom and on-the-job training. The initial training program is held at Crown Gold Exchange's location in Rancho Santa Margarita, CA, at the franchisee's location, or virtually.
The training program covers several topics, including an introduction and overview of the industry, the business model, the brand, establishing the location, and working with Crown Gold Exchange. This segment includes 8 hours of classroom training. The training also includes operations and management topics such as buying, selling, staffing, customer service, administration, insurance, reporting, and technology and systems, which includes 8 hours of classroom training and 40 hours of on-the-job training. Marketing and sales training includes brand information, competitive overviews, advertising and marketing, closing business, and marketing collateral and tools, which consists of 8 hours of classroom training and 8 hours of on-the-job training. Grand opening and launch training includes 2 hours of classroom training and 8 hours of on-the-job training.
Crown Gold Exchange does not charge a fee for up to 2 people to attend training. However, the franchisee must pay for the travel and living expenses of their employees or managers who attend the training. The franchisee must attend training and may send additional people to training up to the maximum number allowed. The franchisee must complete the training to Crown Gold Exchange's satisfaction at least two weeks before opening their business and pass a test evaluating their understanding of the content covered in the training program. If the franchisee fails to pass the test or complete the initial training, Crown Gold Exchange has the right to terminate the franchise agreement with no refund of the initial franchise fee.
The franchisee's business must be under the on-site supervision of the franchisee or a general manager who has completed the training program. If a new general manager needs to attend the training program, Crown Gold Exchange will charge a fee, which is currently $250 per day. Crown Gold Exchange may schedule training classes based on the needs of new franchisees and anticipates holding training classes before the franchisee's location opens at its corporate office and retail locations in California.