Under what conditions can the Crown Gold Exchange franchise agreement be renewed?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Crown Gold Franchising of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Crown Gold Franchising (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Crown Gold Franchising) renovations and changes to the Business as Crown Gold Franchising requires (including a Remodel, if applicable) to conform to the thencurrent System Standards;
- (iv) Franchisee and its Owners execute Crown Gold Franchising's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Crown Gold Franchising's then-standard form) of any and all claims against Crown Gold Franchising, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the franchise agreement has an initial term of 10 years. A franchisee can enter into a successor agreement if they meet certain conditions before the expiration of the initial term.
First, the franchisee must notify Crown Gold Exchange of their election to renew the agreement between 90 and 180 days before the end of the current term. Second, the franchisee and its affiliates must be in compliance with the current franchise agreement and all other agreements with Crown Gold Exchange at both the time of election and the time of renewal.
Third, the franchisee must make or agree to make renovations and changes to the business as required by Crown Gold Exchange to conform to the then-current System Standards, including any required remodeling. Fourth, the franchisee and each owner must execute Crown Gold Exchange's then-current standard form of franchise agreement and related documents, including a personal guaranty, which may be materially different from the original agreement and may include higher or different fees. However, the franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in the agreement. Finally, the franchisee and each owner must execute a general release of any and all claims against Crown Gold Exchange, its affiliates, and their respective owners, officers, directors, agents, and employees on Crown Gold Exchange's then-standard form.