Must the Principal Executive serve as the day-to-day general manager of the Crown Gold Exchange business?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
r's interest in Franchisee. If any of this information changes, Franchisee shall notify Franchisor within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the Principal Executive is not required to serve as the day-to-day general manager of the business. However, the Principal Executive must be the person primarily responsible for the business and have decision-making authority on behalf of the franchisee.
The Principal Executive is required to have at least a 10% ownership interest in the franchise. While they don't have to manage the daily operations, they must devote substantial time and attention to the Crown Gold Exchange business.
Furthermore, the FDD states that the Crown Gold Exchange business must at all times be under the on-site supervision of the Principal Executive or a general manager who has completed Crown Gold Exchange's training program. This means that if the Principal Executive does not directly manage the business, the franchisee must hire a general manager who has completed the required training.