How does Endless Summer Sweets determine the territory granted to a franchisee?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
t to our approval.
Grant of Territory
Your franchise agreement will specify a territory, which will be determined by us. Your territory will generally have a territory comprised of a population of approximately 50,000 to 100,000 people around your location. Your territory will be specified by boundaries such a radius or zip codes or other political boundaries, streets, geographical features or trade area, The size of your territory will vary depending on the population and demographics of the area around your location and may be smaller or larger.
Relocation; Establishment of Additional Outlets
You do not have the right to relocate your business, and we have no obligation to approve any request for relocation. Our policy is to approve relocation of a franchisee's business on caseby-case basis, considering factors such as changes in demographics, profitability of your current business, or a loss of your premises due to circumstances beyond your control.
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually agreed number of additional outlets on a mutually agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Endless Summer Sweets restaurant business, (3) you must be in compliance with all brand requirements at your open Endless Summer Sweets restaurant business(es), and (4) you must not be in default under any other agreement with us.
Source: Item 12 — TERRITORY (FDD pages 25–27)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, the franchise agreement will specify a territory determined by Endless Summer Sweets. This territory typically includes a population of approximately 50,000 to 100,000 people around the franchisee's location. The territory's boundaries may be defined by a radius, zip codes, political boundaries, streets, geographical features, or trade areas.
The size of the territory can vary depending on the population and demographics of the area surrounding the location, potentially being smaller or larger than the typical range. The franchisee's location is for a specific site, which, if not known when signing the franchise agreement, is subject to Endless Summer Sweets' approval.
Endless Summer Sweets grants franchisees an exclusive territory, meaning they will not establish another company-owned or franchised outlet selling similar goods or services under the same trademarks within that territory. The continuation of this territorial protection does not depend on achieving specific sales volumes or market penetration. However, Endless Summer Sweets retains the right to use other distribution channels, such as the internet, to make sales within the franchisee's territory without compensation to the franchisee. There are no restrictions on franchisees soliciting or accepting orders from consumers outside their territory if it is not within another franchisee's territory.