What is being licensed to the Franchisee by Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| ARTICLE 13. | DEFAULT AND TERMINATION | 21 | | ARTICLE 14. | TRANSFERS | 24 | | ARTICLE 15. | INDEMNITY | 26 | | ARTICLE 16. | DISPUTE RESOLUTION | 26 | | ARTICLE 17. | MISCELLANEOUS | 28 | | | | |
This Agreement is made between Endless Summer Sweets Franchising, Inc. ("Franchisor"), and Franchisee effective as of the date signed by Franchisor (the "Effective Date").
Background Statement:
- A. Franchisor has created and owns a system (the "System") for developing and operating a themed restaurant created to revive the kid in your customers, bringing back memories of the neighborhood fairs with family and friends, using local ingredients, when avaible, and offering fun, fair food, at its finest.
- B. The System includes (1) methods, procedures, and standards for developing and operating an Endless Summer Sweets business, (2) plans, specifications, equipment, signage and trade dress for Endless Summer Sweets businesses, (3) particular products and services, (4) the Marks, (5) training programs, (6) business knowledge, (7) marketing plans and concepts, and (8) other mandatory or optional elements as determined by Franchisor from time to time.
- C. The parties desire that Franchisor license the Marks and the System to Franchisee for Franchisee to develop and operate an Endless Summer Sweets business on the terms and conditions of this Agreement.
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, judgment or appeal thereof, whether formal or informal.
- "Approved Vendor" means a supplier, vendor, or distributor of goods or services which has been approved by Franchisor.
- "Business" means Franchisor's business owned by Franchisee and operated under this Agreement.
- "Competitor" means any business which engages in, owns, is affiliated with or operates a restaurant or store that features foods and drinks the same as or similar to an Endless Summer Sweets store.
- "Confidential Information" means all non-public information of or about the System and any Endless Summer Sweets business, including all methods for developing and operating the business, and all non-public plans, data, financial information, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information and know-how.
- "Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the franchise agreement outlines the licensing of the 'Marks' and 'System' to the franchisee, enabling them to develop and operate an Endless Summer Sweets business. The 'System' encompasses various elements, including methods, procedures, and standards for business operation, plans, specifications, equipment, signage, trade dress, specific products and services, training programs, business knowledge, and marketing plans. This comprehensive system aims to provide franchisees with the necessary tools and knowledge to establish and run a successful Endless Summer Sweets franchise.
Specifically, Endless Summer Sweets grants the franchisee the right to operate one Endless Summer Sweets business solely at the designated location. The franchisee is obligated to develop, open, and operate the business at this location for the entire term of the agreement. This license is limited to the specific location, and the franchisee cannot operate the business elsewhere without further agreement with the franchisor.
Endless Summer Sweets also provides a protected territory, within which the franchisor will not establish or license another business selling similar goods or services under the same trademarks. However, the franchisor retains the right to establish and license businesses outside this territory, operate businesses under different brand names, and sell products and services through other distribution channels, including the internet. This territorial protection offers a degree of exclusivity but is subject to certain limitations, which prospective franchisees should carefully consider.