Can Endless Summer Sweets request that a franchisee submit a proposed lease for written approval?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
n annual renewal of the insurance coverage, as well as at any time upon request of Franchisor.
- 7.16 Payments to Third Parties. Franchisee shall pay all vendors and suppliers in a timely manner. Franchisee shall pay all taxes when due. If Franchisee borrows money, it shall comply with the terms of its loan and make all loan payments when due. If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
- 7.17 Public Relations. Without Franchisor's prior written approval, which will not be unreasonably withheld, Franchisee shall not make any public statements, including without limitation interviews or issuing press releases, regarding Franchisor, the Business, or any particular incident or occurrence related to the Business.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, franchisees must obtain prior written approval from Endless Summer Sweets before making any public statements regarding the brand, the business, or any specific incident related to the business. This approval will not be unreasonably withheld. Similarly, franchisees need prior written approval, which will also not be unreasonably withheld, before associating the business with any charitable, political, religious, or other organization through donations or support. Franchisees are also prohibited from engaging a third-party management company to manage or operate the business without prior written approval from Endless Summer Sweets, which again, will not be unreasonably withheld.
While the FDD excerpts outline several instances where Endless Summer Sweets requires written approval from franchisees for various activities, it does not explicitly state whether Endless Summer Sweets requires franchisees to submit a proposed lease for written approval. However, the document does state that if a franchisee leases their location, they must comply with the lease terms and make all rent payments when due.
Prospective Endless Summer Sweets franchisees should directly ask the franchisor whether they must submit a proposed lease for written approval. Understanding the franchisor's requirements for lease approval is crucial for franchisees as it can impact their ability to secure a suitable location and manage their business effectively. This information will help franchisees make informed decisions about location selection and lease negotiation.