Is Endless Summer Sweets obligated to assist franchisees in negotiating the purchase or lease of a site?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
r sites and territories will apply. We are not obligated to further assist you in locating a site or negotiating the purchase or lease of the site.
- (i) We generally do not own your premises.
- (ii) If your site is not already known and approved by us when you sign your franchise agreement, we will specify in your franchise agreement the area in which you must select a site (Franchise Agreement, Summary Page). We do not select your site, but your site is subject to our approval. To obtain our approval, you must provide all information and documents about the site that we require.
- (iii) The factors we consider in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
- (iv) The time limit for us to approve or disapprove your proposed site is 30 days after you submit all of our required documents and information. (Section 6.1). If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless we agree to extend the deadline, you will be in default, and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–25)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, Endless Summer Sweets is not obligated to assist franchisees in negotiating the purchase or lease of a site. However, Endless Summer Sweets will review and advise franchisees regarding potential locations that the franchisee submits. If the franchisee signs a Multi-Unit Development Agreement, 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.
Endless Summer Sweets does not select the site, but the site is subject to their approval. To obtain their approval, the franchisee must provide all information and documents about the site that they require. The factors Endless Summer Sweets considers in approving sites are general location and neighborhood, competition, trade area demographics, traffic patterns, parking, size, physical characteristics of existing buildings, and lease terms.
The time limit for Endless Summer Sweets to approve or disapprove a proposed site is 30 days after the franchisee submits all of the required documents and information. If Endless Summer Sweets and the franchisee cannot agree on a site, the franchisee will be unable to comply with their obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless Endless Summer Sweets agrees to extend the deadline, the franchisee will be in default, and they may terminate the franchise agreement.