factual

What is the relationship between the Rider and the Crown Gold Exchange franchise agreement?

Crown_Gold_Exchange Franchise · 2024 FDD

Answer from 2024 FDD Document

See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.

The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, and therefore the applicable provision of the Agreement is amended to state "No action may be commenced pursuant to Minnesota Statutes, Section 80C.17 more than three years after the cause of action accrues."

3. Effective Date. This Rider is effective as of the Effective Date.

GOLDMEMBER, LLC

NEW YORK RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT

(the "Agreement"), between Goldmember, LLC, a This Rider amends the Franchise and Multi-Unit Development Agreement dated Idaho limited liability ("Franchisee"). company ("Crown Gold Franchising") and, a 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. 2. Waivers Not Required. would relieve Crown Gold Franchising New York General Business Law, Article 33. Notwithstanding any provision of the Agreement to the contrary, Franchisee is not required to assent to a release, assignment, novation, waiver or estoppel which or any other person from any duty or liability imposed by 3. Waivers of New York Law Deleted. Agreement purporting to bind Franchisee to waive compliance by Crown Gold Franchising deleted. Any condition, stipulation, or provision in the with any provision of New York General Business Law, or any rule promulgated thereunder, is hereby 4. Governing Law. Notwithstanding any provision of the Agreement to the contrary, the New York Franchises Law shall govern any claim arising under that law. 5. This Rider is effective as of the Effective Date. Effective Date. Agreed to by: GOLDMEMBER, LLC Date:

Date:

NORTH DAKOTA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT

This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Goldmember, LLC, a Idaho limited liability company ("Crown Gold Franchising") and, a ("Franchisee").

  • 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
  • 2. Amendments. The Agreement (and any Guaranty Agreement) is amended to comply with the following:
    • (1) Restrictive Covenants: Every contract by which Franchisee, any Guarantor, or any other person is restrained from exercising a lawful profession, trade, or business of any kind is subject to NDCC Section 9-08-06.
    • (2) Situs of Arbitration Proceedings: Franchisee and any Guarantor are not required to agree to the arbitration of disputes at a location that is remote from the site of Franchisee's business.
    • (3) Restrictions on Forum: Franchisee and any Guarantor are not required to consent to the jurisdiction of courts outside of North Dakota.
    • (4) Liquidated Damages and Termination Penalties: Franchisee is not required to consent to liquidated damages or termination penalties.
    • (5) Applicable Laws: The Agreement (and any Guaranty Agreement) is governed by the laws of the State of North Dakota.
    • (6) Waiver of Trial by Jury: Franchisee and any Guarantor do not waive a trial by jury.
    • (7) Waiver of Exemplary and Punitive Damages: The parties do not waive exemplary and punitive damages.
    • (8) General Release: Franchisee and any Guarantor are not required to sign a general release upon renewal of the Agreement.
    • (9) Limitation of Claims: Franchisee is not required to consent to a limitation of claims. The statute of limitations under North Dakota law applies.
    • (10) Enforcement of Agreement: The prevailing party in any enforcement action is entitled to recover all costs and expenses including attorney's fees.
  • 3. Effective Date. This Rider is effective as of the Effective Date.

Source: Item 22 — CONTRACTS (FDD pages 38–39)

What This Means (2024 FDD)

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a Rider amends the existing Franchise and Multi-Unit Development Agreement. The Rider is an agreement between Goldmember, LLC (Crown Gold Franchising) and the Franchisee. The effective date of the Rider is the same as the effective date of the Franchise Agreement.

The FDD includes examples of Riders for specific states like New York, North Dakota, Maryland, and Minnesota. These state-specific Riders modify the franchise agreement to comply with the franchise laws of those states. For example, the Maryland Rider clarifies that certain provisions in the agreement do not act as a release, estoppel, or waiver of liability under the Maryland Franchise Law. Similarly, the New York Rider states that New York franchise law governs any claim arising under that law, regardless of what the franchise agreement says.

For a prospective Crown Gold Exchange franchisee, this means that the standard franchise agreement may be modified by a Rider specific to their state. It is important to carefully review any Rider attached to the franchise agreement to understand how it changes the terms of the agreement and what rights and obligations the franchisee has under state law. These Riders are designed to ensure compliance with local regulations and protect the franchisee's rights within that jurisdiction.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.