Does Endless Summer Sweets require franchisee business locations to meet specific specifications?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
ND SERVICES**
Generally
We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us or our designee, or from suppliers approved by us, or (2) according to our specifications.
Specific Obligations
The following are our current specific obligations for purchases and leases:
- A. Real Estate. Your business location is subject to our approval and must meet our specifications. You must use reasonable efforts to have your landlord sign our form of Conditionals Assignment of Lease (attached to this disclosure document as Exhibit 5 to the Franchise Agreement).
- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business interruption insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any
insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written notice of cancellation.
- C. Point-of-sale software and hardware, and related software and hardware. You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware that we specify. We may periodically change any software requirements to adapt to changing capabilities by written notice to you or by updating our Manual.
- D. Approved Suppliers of Certain Items. You must purchase your food and drink products including prepared foods with our proprietary recipes from our Approved Vendors. We will publish a list of approved vendors and order procedures in the Manual or otherwise provide that to you in writing. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 14–16)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the franchisor does require that franchisee business locations meet specific specifications. The FDD states that a franchisee's business location is subject to Endless Summer Sweets's approval and must adhere to their specifications. Additionally, Endless Summer Sweets requires franchisees to use reasonable efforts to have their landlord sign their form of Conditional Assignment of Lease, which is attached as Exhibit 5 to the Franchise Agreement.
Endless Summer Sweets also issues specifications and standards for applicable aspects of the franchise in their Manual and/or in written directives. These specifications and standards can be modified at any time. New or revised specifications are generally issued after thorough testing in the headquarters, company-owned outlets, and/or a limited market test in multiple units.
In addition to real estate specifications, franchisees must purchase signs used to identify the restaurant from a vendor Endless Summer Sweets approves, utilizing designs they approve. Franchisees are also obligated to purchase or lease point-of-sale software and hardware that Endless Summer Sweets specifies, which may change periodically. Furthermore, food and drink products, including prepared foods with proprietary recipes, must be purchased from Endless Summer Sweets's approved vendors, with a list of approved vendors and order procedures published in the Manual or provided in writing.