For Endless Summer Sweets, what is the deadline for opening location #5?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| 3. | Development Area. Franchisee shall locate each Endless Summer Sweets business it develops under this MUDA within the following area: | ||
|---|---|---|---|
| effect | (the "Development Area"). Franchisee has | ||
| exclusive rights to develop, open or | |||
| operate Endless Summer Sweets businesses in the Development Area | |||
| while this agreement is in | |||
| 4. | Default and Termination. Franchisor may terminate this MUDA by giving notice to | ||
| Franchisee, without opportunity to cure, if any of the following occur: | |||
| (i) | Franchisee fails to satisfy the development schedule; or | ||
| (ii) | Franchisor has the right to terminate any franchise agreement between Franchisor | ||
| and Franchisee (or any affiliate thereof) due to Franchisee's default thereunder | |||
| (whether or not Franchisor actually terminates | |||
| such franchise agreement). | |||
| 5. | Limitation of Liability. Franchisee's | ||
| commitment to develop Endless Summer Sweets | |||
| businesses is in the nature of an option only. If Franchisor terminates this MUDA for Franchisee's | |||
| default, Franchisee shall not be liable to Franchisor for lost future revenues or profits from the | |||
| unopened Endless Summer Sweets | |||
| businesses. | |||
| 6. | Conditions. Franchisee's right to develop each Endless Summer Sweets | ||
| franchise after the | |||
| first franchise is subject to the following: | |||
| (i) | Franchisee must possess sufficient financial and organizational capacity to develop, | ||
| open, operate, and manage each additional Endless Summer Sweets | |||
| business, in the | |||
| reasonable judgment of Franchisor, and | |||
| (ii) | Franchisee must be in full compliance with all brand requirements at its open and | ||
| operating | |||
| Endless Summer Sweets | |||
| businesses, and not in default under any | |||
| Franchise Agreement or any other agreement with Franchisor. | |||
| 7. | Dispute Resolution; Miscellaneous. The laws of the State of California | ||
| (without giving | |||
| effect to its principles of conflicts of law) govern all adversarial proceedings between the parties. | |||
| The parties agree that any California law for the protection of franchisees or business opportunity | |||
| purchasers will not apply unless its jurisdictional requirements are met independently without | |||
| reference to this Section 7. | |||
| Franchisee shall not Transfer this MUDA without the prior written | |||
| consent of Franchisor, and any | |||
| Transfer without Franchisor's prior written consent shall be void. | |||
| The provisions of Article 17 (Dispute Resolution) and Article 18 (Miscellaneous) of the Franchise | |||
| Agreement apply to and are incorporated into this MUDA as if fully set forth herein. | |||
| Agreed to by: | |||
| FRANCHISOR: | |||
| Endless Summer Sweets Franchising, Inc. | |||
| By: |
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
Based on the 2024 Endless Summer Sweets Franchise Disclosure Document, the information provided does not specify a deadline for opening the 5th location. However, the document does refer to a "development schedule" in the context of a Multi-Unit Development Agreement (MUDA). The franchisor can terminate the MUDA if the franchisee fails to meet the development schedule.
The MUDA outlines conditions for developing subsequent Endless Summer Sweets franchises, including the franchisee's financial and organizational capacity and compliance with brand requirements. These factors are evaluated by Endless Summer Sweets Franchising, Inc.
To determine the specific deadline for opening the 5th Endless Summer Sweets location, a prospective franchisee should review the development schedule outlined in the MUDA and discuss this specifically with the franchisor.