What is the payment schedule for the initial franchise fee for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
d Franchisee desire that Franchisee develop multiple Crown Gold Exchange businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Crown Gold Exchange businesses on the following schedule:
| Store # | Deadline for Opening | Total # of Stores to be Open and Operating on Deadline | Initial Franchise Fee |
|---|---|---|---|
| 1 | 1 | $______ | |
| 2 | 2 | $______ | |
| 3 | 3 | $______ | |
| 4 | 4 | $______ | |
| 5 | 5 | $______ | |
| Total Initial Franchise Fee: |
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Crown Gold Franchising. The Initial Franchise Fee is non-refundable.
- 2. Form of Agreement. For Store #1, Franchisee and Crown Gold Franchising have executed the Franchise Agreement simultaneously with this MUDA. For each additional Crown Gold Exchange franchise, Franchisee shall execute Crown Gold Franchising's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location.
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the initial franchise fee is due upon the execution of the Multi-Unit Development Agreement (MUDA). The FDD specifies that the franchisee must pay the total initial franchise fee to Crown Gold Franchising at this time. This fee is non-refundable.
For the first store, the Franchise Agreement is executed simultaneously with the MUDA. For each additional Crown Gold Exchange franchise, the franchisee must execute Crown Gold Franchising's standard franchise agreement within three business days after leasing or acquiring a location. The MUDA does not grant the franchisee the right to open or operate a Crown Gold Exchange business until a separate franchise agreement is executed for each location.
The FDD includes a table outlining the total number of stores to be opened by certain deadlines, along with the corresponding initial franchise fee for each store. However, the actual dollar amounts for these fees are not specified in the provided excerpts, only indicated by blanks in the table. Prospective franchisees should note that failure to meet the development schedule outlined in the MUDA can result in termination of the agreement by Crown Gold Franchising.