What is the name of the agreement used for multi-unit development for Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
You do not have the right to establish additional franchised outlets unless you sign a Multi-Unit Development Agreement ("MUDA") in the form attached as Exhibit C to this disclosure document. If you and we sign a MUDA, then you will have the right to establish a mutually agreed number of additional outlets on a mutually agreed schedule. Under the MUDA, your right to develop additional outlets is subject to (1) you must comply with the mutually-agreed development schedule, (2) you must have sufficient financial and organizational capacity to develop, open, operate, and manage each additional Endless Summer Sweets restaurant business, (3) you must be in compliance with all brand requirements at your open Endless Summer Sweets restaurant business(es), and (4) you must not be in default under any other agreement with us. We will approve the location of future sites and territories for those sites, and our then-current standards for sites and territories will apply. You are not obligated to develop additional outlets under the MUDA, and you may terminate it any time without penalty. If you do not meet your development schedule in t
Source: Item 5 — INITIAL FEES (FDD page 7)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, the agreement used for multi-unit development is called the Multi-Unit Development Agreement, or MUDA. If a franchisee signs a MUDA with Endless Summer Sweets, they will have the right to establish a mutually agreed number of additional outlets on a mutually agreed schedule.
Under the MUDA, the franchisee's right to develop additional outlets is subject to several conditions. These include complying with the mutually-agreed development schedule, having sufficient financial and organizational capacity to develop, open, operate, and manage each additional Endless Summer Sweets restaurant business, being in compliance with all brand requirements at their open Endless Summer Sweets restaurant business(es), and not being in default under any other agreement with Endless Summer Sweets.
The FDD states that Endless Summer Sweets will approve the location of future sites and territories for those sites, and their then-current standards for sites and territories will apply. The franchisee is not obligated to develop additional outlets under the MUDA and may terminate it any time without penalty. However, failure to meet the development schedule in the MUDA could result in its termination.