Under what article of the Endless Summer Sweets franchise agreement is the grant of license defined?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Franchisor grants to Franchisee the right to operate one Endless Summer Sweets business solely at the Location.
If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1 of this Agreement.
Franchisee shall develop, open and operate the Endless Summer Sweets business at the Location for the entire term of this Agreement.
- 2.2 Protected Territory. Franchisor shall not establish, nor license or franchise the establishment of, another business within the Territory selling the same or similar goods or services under the same trademarks or service marks as an Endless Summer Sweets business.
Franchisor retains the right to:
(i) establish and license others to establish and operate Endless Summer Sweets businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;
(ii) operate and license others to operate businesses anywhere that do not operate under the Endless Summer Sweets brand name; and
(iii) sell and license others to sell products and services in the Territory through channels of distribution (including the internet) other than Endless Summer Sweets outlets.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets Franchise Disclosure Document, Article 2 of the franchise agreement defines the grant of license. Specifically, section 2.1 states that Endless Summer Sweets grants the franchisee the right to operate one Endless Summer Sweets business solely at the agreed-upon location.
This section also clarifies that if the location isn't specified when the agreement is signed, the parties will determine it later according to Section 6.1 of the agreement. The franchisee is obligated to develop, open, and operate the Endless Summer Sweets business at the designated location for the entire term of the agreement.
Furthermore, section 2.2 outlines the protected territory, stating that Endless Summer Sweets will not establish or license another business selling similar goods or services under the same trademarks within the franchisee's territory. However, Endless Summer Sweets retains the right to establish and license businesses outside the territory, operate businesses under different brand names, and sell products and services through other distribution channels, including the internet.