How many successor franchise agreements can an Endless Summer Sweets franchisee enter into?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- (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 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, a franchisee who signs a Multi-Unit Development Agreement (MUDA) can enter into multiple franchise agreements. The MUDA outlines a schedule for the franchisee to develop and open multiple Endless Summer Sweets businesses.
For the initial location under the MUDA, the franchisee and Endless Summer Sweets execute a Franchise Agreement simultaneously with the MUDA. For each subsequent franchise location, the franchisee must execute Endless Summer Sweets' then-current standard franchise agreement within three business days of leasing or acquiring the location.
The MUDA itself does not grant the franchisee the right to open or operate an Endless Summer Sweets business. The franchisee can only proceed with construction, opening, and operation of each location after a separate franchise agreement is executed for each specific Endless Summer Sweets business, as per the MUDA. This means that a franchisee with a MUDA can sign a franchise agreement for each location they are approved to develop.