What must the franchisee execute to construct, open, and operate each Endless Summer Sweets business?

According to the 2024 Endless Summer Sweets FDD, a franchisee must execute a separate franchise agreement for each Endless Summer Sweets business they intend to construct, open, and operate. This requirement is outlined within the context of a Multi-Unit Development Agreement (MUDA). The MUDA itself does not grant the franchisee the right to open or operate an Endless Summer Sweets business. Instead, it sets the stage for future individual franchise agreements.

For the initial location, the franchisee and Endless Summer Sweets execute the Franchise Agreement simultaneously with the MUDA. However, for each subsequent franchise, the franchisee must execute Endless Summer Sweets' then-current standard form of franchise agreement. This execution must occur no later than three business days after the franchisee leases or acquires a location for the new franchise.

This stipulation ensures that each Endless Summer Sweets location operates under a current and specific agreement, allowing Endless Summer Sweets to maintain standards and address any location-specific considerations. It also allows Endless Summer Sweets to update the franchise agreement terms for each new location, reflecting changes in the market or the franchise system. Prospective franchisees should understand that entering into a MUDA is only the first step and that each location requires its own franchise agreement.