Can an Endless Summer Sweets franchisee make sales outside of their business premises?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
There are no restrictions on you from soliciting or accepting orders from consumers outside of your territory if it is not in the territory of another franchisee, except that all marketing and advertising is subject to our approval.
Competition by Us Under Different Trademarks
Neither we nor any of our affiliates operates, franchises, or have plans to operate or franchise a business under a different trademark selling goods or services similar to those you will offer. However, the franchise agreement does not prohibit us from doing so.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 30)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, franchisees face certain restrictions regarding soliciting or accepting orders from consumers outside of their designated territory. Specifically, there are no explicit restrictions on a franchisee soliciting or accepting orders from consumers outside their territory, provided it is not within another franchisee's territory. However, all marketing and advertising efforts remain subject to Endless Summer Sweets' approval.
Endless Summer Sweets also retains the right to use other channels of distribution, including the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within a franchisee's territory. The franchisee will not receive compensation for these sales made by Endless Summer Sweets within their territory.
In effect, an Endless Summer Sweets franchisee can solicit business outside their physical location, as long as it does not encroach on another franchisee's protected territory and adheres to the franchisor's marketing and advertising guidelines. However, Endless Summer Sweets maintains the right to pursue sales through alternative channels, potentially creating competition within a franchisee's territory without direct compensation to the franchisee.