What are the consequences if an Endless Summer Sweets franchisee or owner is convicted of a felony?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
mits another breach of this Agreement, all in the same 12-month period;
- (xii) Franchisor or any Franchisor affiliate terminates any other agreement with Franchisee (or any affiliate) due to the breach of such other agreement by Franchisee or its affiliate; provided however, that termination of a Multi-Unit Development Agreement with Franchisee or its affiliate shall not automatically give Franchisor the right to terminate this Agreement;
- (xiii) Franchisee or any Owner is charged with, pleads guilty or no-contest to, or is convicted of a felony; or
- (xiv) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in Franchisor's opinion is reasonably likely to materially and unfavorably affect the Endless Summer Sweets brand.
- 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
- (i) pay all amounts owed to Franchisor;
- (ii) return to Franchisor all copies of the Manual, Confidential Information and any and all other materials provided by Franchisor to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, if a franchisee or any owner is convicted of a felony, it can lead to the termination of the franchise agreement. Upon termination of the agreement, the franchisee has several obligations.
First, the franchisee must pay all outstanding amounts owed to Endless Summer Sweets. Second, they are required to return all copies of the manual, confidential information, and any other materials related to the business operation. This includes items containing trademarks, copyrights, and other proprietary items, and all confidential and proprietary materials must be deleted from electronic devices.
Additionally, the franchisee must notify all relevant entities, such as telephone, internet, email, and directory services, about the termination of their right to use any numbers, addresses, domain names, or listings associated with the Endless Summer Sweets marks. They must also authorize the transfer of these assets to the franchisor or a new franchisee. Finally, the franchisee must cease doing business under any of the Endless Summer Sweets marks and, within 30 days, de-identify the location by removing all marks, signage, and trade dress to the satisfaction of the franchisor.