Can Endless Summer Sweets unreasonably withhold or delay its written approval to open?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
7.18 Association with Causes. Franchisee shall not in the name of the Business (i) donate money, products, or services to any charitable, political, religious, or other organization, or (ii) act in support of any such organization, without Franchisor's prior written approval, which will not be unreasonably withheld.
7.19 No Other Activity Associated with the Business. Franchisee shall not engage in any business or other activity at the Location other than operation of the Endless Summer Sweets Business.
Franchisee shall not use assets of the Business for any purpose other than the Business.
If Franchisee is an entity, the entity shall not own or operate any other business except the Endless Summer Sweets businesses.
- 7.20 No Third-Party Management. Franchisee shall not engage a third-party management company to manage or operate the Business without the prior written approval of Franchisor, which will not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, the franchisor's approval is required for certain actions, but it cannot be unreasonably withheld. Specifically, franchisees need prior written approval from Endless Summer Sweets for public statements, association with causes, and engaging a third-party management company.
For public relations, franchisees must obtain prior written approval from Endless Summer Sweets before making any public statements, including interviews or issuing press releases, regarding the franchisor, the business, or any particular incident related to the business. This ensures that the brand's image is protected and that consistent messaging is maintained. Similarly, franchisees must seek prior written approval before donating money, products, or services to any charitable, political, religious, or other organization in the name of the business, or acting in support of any such organization. This provision allows Endless Summer Sweets to control how the brand is associated with external causes.
Additionally, franchisees are prohibited from engaging a third-party management company to manage or operate the Endless Summer Sweets business without prior written approval from the franchisor. This requirement ensures that the franchisor maintains oversight of the business operations and that the management company adheres to the brand's standards and practices. In all of these instances, the FDD explicitly states that Endless Summer Sweets's approval will not be unreasonably withheld, providing some assurance to franchisees that legitimate requests will be approved in a timely manner.