How might third-party vendors and suppliers be paid by a Crown Gold Exchange franchisee?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| $1,000 per month | Monthly, by the 5th | See Note 1 and Note 2. | |
| of the following | |||
| month | |||
| Prior to attending | If you send a manager or other employee | ||
| training | to our training program after you open, we | ||
| will charge our then-current training fee. | |||
| We have the right to require franchisees to | |||
| use third-party vendors and suppliers that | |||
| we designate. Examples can include | |||
| computer support vendors, mystery | |||
| shopping, and customer feedback systems. | |||
| The vendors and suppliers may bill | |||
| franchisees directly, or we have the right | |||
| to collect payment for these vendors | |||
| together with a reas |
Source: Item 6 — OTHER FEES (FDD pages 10–12)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, franchisees may be required to use third-party vendors and suppliers designated by the company for services such as computer support, mystery shopping, and customer feedback systems. The FDD outlines two potential payment methods for these vendors.
First, the vendors and suppliers may bill the Crown Gold Exchange franchisees directly for their services. This means the franchisee would receive invoices from these third-party providers and would be responsible for paying them directly according to the terms specified in their agreements.
Alternatively, Crown Gold Exchange retains the right to collect payment for these vendors from the franchisee. In this scenario, Crown Gold Exchange would then remit payment to the vendors on behalf of the franchisee. The FDD specifies that Crown Gold Exchange may include a reasonable markup or charge for administering this payment program, so franchisees should be aware of potential additional costs associated with this arrangement.