Who selects the site for a Crown Gold Exchange franchise?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- A. Your site. We will review and advise you regarding potential locations that you submit to us. (Section 5.4). If you sign a Multi-Unit Development Agreement, we will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, then we and you will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site. Your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–24)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the franchisee is responsible for selecting the site for their business. However, Crown Gold Exchange retains approval rights over the site. The FDD specifies that if a site is not already known and approved when the franchise agreement is signed, the agreement will outline the area in which the franchisee must select a site.
To gain approval for a chosen site, the franchisee must submit all required information and documents to Crown Gold Exchange. The franchisor will then evaluate the site based on factors such as general location, neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
Crown Gold Exchange has 30 days to approve or disapprove a proposed site after receiving all necessary documents and information from the franchisee. If the franchisee and Crown Gold Exchange cannot agree on a site, the franchisee may not be able to meet the obligations outlined in the franchise agreement, potentially leading to default and termination of the agreement unless an extension is granted.