Before opening, what must Crown Gold Franchising do regarding the Crown Gold Exchange business?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ng shall, to the extent it deems appropriate, provide programs for Franchisee to conduct training of new employees.
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.
- (b) Pre-Opening Plans, Specifications, and Vendors. Within a reasonable period of time after the Effective Date, Crown Gold Franchising shall provide Franchisee with (i) Crown Gold Franchising's sample set of standard building plans and specifications and/or standard recommended floor plans; (ii) the applicable System Standards, (iii) other specifications as Crown Gold Franchising deems appropriate (which may include specifications regarding inventory, supplies, materials, and other matters), and (iv) Crown Gold Franchising's lists of Approved Vendors and/or Required Vendors.
- (c) Pre-Opening Training. Crown Gold Franchising shall make available its standard pre-opening training to the Principal Executive and up to 2 other employees, at Crown Gold Franchising's headquarters and/or at a Crown Gold Exchange business designated by Crown Gold Franchising. Crown Gold Franchising shall not charge any fee for this training. Franchisee is responsible for its own travel, lodging, meal, and other out-of-pocket expenses. Crown Gold Franchising reserves the right to vary the length and content of the initial training program based on the experience and skill level of any individual attending the program.
- (d) Market Introduction Plan. Crown Gold Franchising shall advise Franchisee regarding the planning and execution of Franchisee's market introduction plan.
- (e) On-Site Opening Assistance. Crown Gold Franchising shall have a representative support Franchisee's business opening with at least 3-5 days of onsite opening training and assistance.
5.5 Post-Opening Assistance.
(a) Advice, Consulting, and Support. If Franchisee requests, Crown Gold Franchising will provide advice to Franchisee (by telephone or electronic communication) regarding improving and developing Franchisee's business, and resolving operating problems Franchisee encounters, to the extent Crown Gold Franchising deems reasonable. If Crown Gold Franchising provides inperson support in response to Franchisee's request, Crown Gold Franchising may charge its then-
current fee plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support).
- (b) Pricing. Upon request, Crown Gold Franchising will provide recommended prices for products and services offered by franchisees of the System.
- (c) Procedures.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, before a franchisee can open their Crown Gold Exchange business, Crown Gold Franchising has several obligations. Crown Gold Franchising must provide its criteria for selecting a location and advise the franchisee on potential locations. They also need to supply standard building plans, specifications, applicable System Standards, and lists of Approved and/or Required Vendors.
Crown Gold Franchising is also responsible for making available its standard pre-opening training to the Principal Executive and up to two other employees, without charging a fee for the training itself. However, the franchisee is responsible for covering their own travel, lodging, meals, and other out-of-pocket expenses related to the training. Additionally, Crown Gold Franchising will advise the franchisee on planning and executing their market introduction plan.
Finally, Crown Gold Franchising will support the franchisee's business opening by providing a representative for at least 3-5 days of onsite opening training and assistance. The franchisee must also notify Crown Gold Franchising at least 30 days before they intend to open the business to the public. Before opening, the franchisee must be in compliance with the agreement, have all permits and authorizations, conform to all System Standards, have the business inspected and approved by Crown Gold Franchising, have hired sufficient employees, have officers and employees complete pre-opening training, and have written approval to open from Crown Gold Franchising.