For Crown Gold Exchange, has any relevant party been the subject of a civil action alleging fraud?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
Source: Item 23 — RECEIPTS (FDD pages 39–114)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, the New York Addendum modifies Item 3 regarding litigation history. It states that, with the exception of what is stated above, no relevant party (including the franchisor, its predecessor, individuals identified in Item 2, or affiliates offering franchises under the Crown Gold Exchange trademark) has an administrative, criminal, or civil action pending against them alleging fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable allegations.
Furthermore, the addendum clarifies that no relevant party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the Crown Gold Exchange franchise system or its business operations.
This information is specific to the State of New York. Prospective franchisees outside of New York should review Item 3 of the FDD and any other applicable state-specific addenda to understand the full scope of any past or pending litigation involving Crown Gold Exchange and its relevant parties. Franchisees should also independently verify this information through their own due diligence.