For an Endless Summer Sweets franchise, is the franchise granted for a specific location?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 12 TERRITORY
Your Location
Your franchise is for a specific location. If the specific location is not known at the time you sign a franchise agreement, then your location is subject 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. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in the MUDA, we have the right to terminate your right to develop additional outlets.
Source: Item 12 — TERRITORY (FDD pages 25–27)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the franchise is granted for a specific location. The specific location must be approved by Endless Summer Sweets. The franchisee does not have the right to relocate the business without approval from Endless Summer Sweets, which is granted on a case-by-case basis. Factors that Endless Summer Sweets considers are changes in demographics, profitability of the current business, or loss of premises beyond the franchisee's control.
The franchise agreement specifies a territory, determined by Endless Summer Sweets, generally comprised of a population of approximately 50,000 to 100,000 people around the franchise location. The territory is defined by boundaries such as a radius, zip codes, political boundaries, streets, geographical features, or trade area. The size of the territory varies depending on the population and demographics of the area around the location and may be smaller or larger.
The franchisee does not have the right to establish additional franchised outlets unless they sign a Multi-Unit Development Agreement (MUDA). If a MUDA is signed, the franchisee has the right to establish a mutually agreed number of additional outlets on a mutually agreed schedule. The right to develop additional outlets under the MUDA is subject to compliance with the development schedule, sufficient financial and organizational capacity, compliance with brand requirements, and not being in default under any other agreement with Endless Summer Sweets. Endless Summer Sweets will approve the location of future sites and territories for those sites, and their then-current standards for sites and territories will apply. The franchisee is not obligated to develop additional outlets under the MUDA and may terminate it any time without penalty. If the development schedule in the MUDA is not met, Endless Summer Sweets has the right to terminate the right to develop additional outlets.