factual

What is considered the 'Business' in the context of an Endless Summer Sweets franchise agreement?

Endless_Summer_Sweets Franchise · 2024 FDD

Answer from 2024 FDD Document

This Agreement is made between Endless Summer Sweets Franchising, Inc. ("Franchisor"), and Franchisee effective as of the date signed by Franchisor (the "Effective Date").

Background Statement:

  • A. Franchisor has created and owns a system (the "System") for developing and operating a themed restaurant created to revive the kid in your customers, bringing back memories of the neighborhood fairs with family and friends, using local ingredients, when avaible, and offering fun, fair food, at its finest.
  • B. The System includes (1) methods, procedures, and standards for developing and operating an Endless Summer Sweets business, (2) plans, specifications, equipment, signage and trade dress for Endless Summer Sweets businesses, (3) particular products and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by Franchisor from time to time.
  • C. The parties desire that Franchisor license the Marks and the System to Franchisee for Franchisee to develop and operate an Endless Summer Sweets business on the terms and conditions of this Agreement.

ARTICLE 1. DEFINITIONS


ARTICLE 2. GRANT OF LICENSE

  • 2.1 Grant. Franchisor grants to Franchisee the right to operate one Endless Summer Sweets business solely at the Location.

If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1 of this Agreement.

Franchisee shall develop, open and operate the Endless Summer Sweets business at the Location for the entire term of this Agreement.

  • 2.2 Protected Territory. Franchisor shall not establish, nor license or franchise the establishment of, another business within the Territory selling the same or similar goods or services under the same trademarks or service marks as an Endless Summer Sweets business.

Franchisor retains the right to:

  • (i) establish and license others to establish and operate Endless Summer Sweets businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;

  • (ii) operate and license others to operate businesses anywhere that do not operate under the Endless Summer Sweets brand name; and

  • (iii) sell and license others to sell products and services in the Territory through channels of distribution (including the internet) other than Endless Summer Sweets outlets.

  • 2.3 Franchisee Control. Franchisee represents that it will identify each owner, officer and director of Franchisee, and describes the nature and extent of each owner's interest in Franchisee.

If any of this information changes, Franchisee shall notify Franchisor within 10 days.

  • 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee.

Franchisee shall pay all taxes when due.

If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due.

If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.

  • 7.17 Public Relations. Without Franchisor's prior written approval, which will not be unreasonably withheld, Franchisee shall not make any public statements, including without limitation interviews or issuing press releases, regarding Franchisor, the Business, or any particular incident or occurrence related to the Business.

  • 7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization, or (ii) act in support of any such organization, without Franchisor's prior written approval, which will not be unreasonably withheld.

  • 7.19 No Other Activity Associated with the Business. Franchisee shall not engage in any business or other activity at the Location other than operation of the Endless Summer Sweets Business.

Franchisee shall not use assets of the Business for any purpose other than the Business.

If Franchisee is an entity, the entity shall not own or operate any other business except the Endless Summer Sweets businesses.

  • 7.20 No Third-Party Management. Franchisee shall not engage a third-party management company to manage or operate the Business without the prior written approval of Franchisor, which will not be unreasonably withheld.

  • 7.21 Identification. Franchisee must identify itself as the independent owner of the Business in the manner prescribed by Franchisor.

Franchisee must display at the Business signage prescribed by Franchisor identifying the Location as an independently owned franchise.

  • 7.22 Business Practices. Franchisee, in all interactions with customers, employees, vendors, governmental authorities, and other third parties, shall be honest and fair.

Franchisee shall comply with any code of ethics or statement of values from Franchisor.

Franchisee shall not take any action which may injure the goodwill associated with the Marks.

Source: Item 23 — RECEIPTS (FDD pages 39–125)

What This Means (2024 FDD)

According to the 2024 Endless Summer Sweets Franchise Disclosure Document, the 'Business' refers to the Endless Summer Sweets business that the franchisee is authorized to develop and operate. This business operates under the Endless Summer Sweets system, which includes specific methods, procedures, and standards. The system also encompasses plans, specifications, equipment, signage, trade dress, particular products and services, the brand's trademarks, training programs, business knowledge, and marketing plans.

Endless Summer Sweets grants the franchisee the right to operate one Endless Summer Sweets business solely at the specified location for the entire term of the agreement. The franchisee is expected to develop, open, and operate the business at this location. The franchisor also provides a protected territory, within which it will not establish or license another business selling similar goods or services under the same trademarks. However, the franchisor retains the right to establish and license other Endless Summer Sweets businesses outside this territory, even if they are in proximity or impact the franchisee's business.

The franchisee is responsible for identifying the principal executive who will be primarily responsible for the business and have decision-making authority. The franchisee must operate honestly and fairly in all interactions with customers, employees, vendors, and governmental authorities. The franchisee is also restricted from engaging in any business or activity at the location other than the operation of the Endless Summer Sweets business and cannot use the business's assets for any purpose other than the business itself. If the franchisee is an entity, it cannot own or operate any other business except for Endless Summer Sweets businesses, unless approved by the Franchisor.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.