To whom can an Endless Summer Sweets franchisee make sales?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, a franchisee is granted the right to operate one Endless Summer Sweets business solely at an approved location. This location is determined and stated on the Location Acceptance Letter.
The franchisee is expected to operate the Endless Summer Sweets business at this specific location for the entire duration of the franchise agreement. While Endless Summer Sweets grants a protected territory, meaning the franchisor will not establish another similar business under the same brand within that territory, the franchisor retains the right to operate or license others to operate businesses outside this territory, even if they are nearby or impact the franchisee's business.
Furthermore, Endless Summer Sweets reserves the right to sell and license others to sell products and services within the franchisee's territory through different channels of distribution, including the internet, which are not Endless Summer Sweets outlets. This implies that while a franchisee has a specific location, sales within the territory are not exclusive to the franchisee's physical store, as the franchisor can utilize other sales channels.