What is the timeframe for the 'two notices of default' rule for Crown Gold Exchange franchisees?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- (xi) Franchisee has received two or more notices of default and Franchisee commits another breach of this Agreement, all in the same 12-month period;
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, a franchisee can have their franchise agreement terminated if they receive two or more notices of default and then commit another breach of the agreement, all within the same 12-month period.
This means that Crown Gold Exchange franchisees need to be particularly diligent in adhering to the franchise agreement. If a franchisee receives two default notices for any breaches, any subsequent breach within that same year, regardless of its severity, could trigger termination of the franchise agreement by Crown Gold Exchange.
This clause is designed to protect the Crown Gold Exchange brand and ensure consistent standards across all franchise locations. It underscores the importance of addressing any issues that lead to default notices promptly and preventing further breaches to avoid potential termination.