Where must the Franchisee operate the Endless Summer Sweets business?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
of transactions, (i) substantially all of the assets of the Business, (ii) this Agreement, (iii) any direct or indirect ownership interest in the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 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.
- 2.3 Franchisee Control. Franchisee represents that it will identify each owner, officer and director of Franchisee, and describes the nature and extent of each owner's interest in Franchisee. If any of this information changes, Franchisee shall notify Franchisor within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, a franchisee is granted the right to operate their business solely at the location specified in the Location Acceptance Letter. The franchisee is obligated to develop, open, and operate the Endless Summer Sweets business at this designated location for the entire term of the Franchise Agreement.
The Franchise Agreement specifies that Endless Summer Sweets will not establish, nor license others to establish, another business within the franchisee's Territory that sells similar goods or services under the same trademarks. However, Endless Summer Sweets retains the right to operate or license businesses outside the Territory, even if they are near the franchisee's location or impact their business. Additionally, Endless Summer Sweets can sell and license others to sell products and services within the Territory through different channels of distribution, including the internet, that are not Endless Summer Sweets outlets.
Furthermore, the franchisee is prohibited from engaging in any business or activity at the designated location other than the operation of the Endless Summer Sweets business. If the franchisee is an entity, that entity cannot own or operate any other business except for Endless Summer Sweets businesses. The franchisee must also identify themselves as the independent owner of the business and display signage prescribed by Endless Summer Sweets to indicate that the location is an independently owned franchise.