What are the key terms covered in the Endless Summer Sweets Multi-Unit Development Agreement?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
ee may, after giving reasonable prior notice to Landlord, enter the Leased Premises to remove signs and other material bearing Franchisor's brand name, trademarks, and commercial symbols, provided that Franchisor will be liable to Landlord for any damage Franchisor or its designee causes by such removal.
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- No Liability. By executing this Rider, Franchisor does not assume any liability with respect to the Leased Premises or any obligation as Tenant under the Lease.
Executed by:
LANDLORD: TENANT:
EXHIBIT C TO DISCLOSURE DOCUMENT
MULTI-UNIT DEVELOPMENT AGREEMENT
This Multi-Unit Development Agreement (this "MUDA") is made between Endless Summer Sweets Franchising, Inc. ("Franchisor") and , a ("Franchisee") on the Effective Date. Background Statement: On the same day as they executed this MUDA, Franchisor and Franchisee have into Franchise Agreement for the franchise of entered a a business (the "Franchise Agreement;" capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). Franchisor and Franchisee desire that Franchisee multiple businesses. 1. Multi-Unit Commitment. (a) Development Schedule; Fee. Franchisee shall develop and open businesses on the following schedule:
| Location # | Deadline for Opening | Total Restaurants to be Open and Operating on Deadline | Initial Franchise Fee |
|---|---|---|---|
| 1 | 1 | $ | |
| 2 | 2 | $ | |
| 3 | 3 | $ | |
| 4 | 4 | $ | |
| 5 | Total Initial Franchise Fee: | 5 | $ |
- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fees to Franchisor. The Initial Franchise Fees are non-refundable.
- 2. Form of Agreement. For the first location, Franchisee and Franchisor have executed the Franchise Agreement simultaneously with this MUDA. For each additional franchise, Franchisee shall execute Franchisor's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location for the franchise. This MUDA does not give Franchisee the right to construct, open, or operate an Endless Summer Sweets business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Endless Summer Sweets business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each Endless Summer Sweets business.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, the Multi-Unit Development Agreement (MUDA) outlines the terms for franchisees who commit to opening multiple Endless Summer Sweets locations. The MUDA includes a development schedule that specifies when the franchisee must develop and open new businesses. The agreement stipulates that for each franchise after the initial one, the franchisee will be required to sign the then-current form of the franchise agreement, which may differ from the original.
The MUDA grants the franchisee the right to establish an agreed-upon number of additional outlets based on a mutually agreed schedule. However, this right is contingent upon several factors: compliance with the development schedule, sufficient financial and organizational capacity to manage each additional restaurant, adherence to all brand requirements at existing Endless Summer Sweets locations, and remaining in compliance with all agreements with Endless Summer Sweets.
Endless Summer Sweets retains approval rights over the locations and territories for future sites, ensuring that they meet the company's current standards. While franchisees are not obligated to develop additional outlets under the MUDA and can terminate it without penalty, Endless Summer Sweets reserves the right to terminate the franchisee's development rights if the development schedule is not met. The agreement itself is made between Endless Summer Sweets Franchising, Inc. and the franchisee, becoming effective on the date it is signed by Endless Summer Sweets.