Is written approval from Endless Summer Sweets a condition to opening the business?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2. Form of Agreement. For the first location, Franchisee and Franchisor have executed the Franchise Agreement simultaneously with this MUDA. For each additional franchise, Franchisee shall execute Franchisor's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location for the franchise. This MUDA does not give Franchisee the right to construct, open, or operate an Endless Summer Sweets business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Endless Summer Sweets business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each Endless Summer Sweets business.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, while there isn't a single explicit statement requiring written approval to open the business, several clauses imply that opening and operating the franchise are contingent on adhering to Endless Summer Sweets's standards and receiving their guidance. Specifically, Endless Summer Sweets offers pre-opening assistance, including location selection criteria, standard building plans, system standards, and vendor lists.
The FDD states that Endless Summer Sweets will advise franchisees on potential locations and provide standard building plans and specifications. This suggests that franchisees need to align their chosen location and build-out plans with Endless Summer Sweets's criteria. Furthermore, Endless Summer Sweets commits to supporting the business opening with on-site training and assistance, indicating a collaborative process where Endless Summer Sweets is actively involved in ensuring the franchisee meets the brand's standards before and during the opening phase.
Additionally, the Multi-Unit Development Agreement (MUDA) states that the agreement itself does not grant the right to open an Endless Summer Sweets business. A separate franchise agreement must be executed for each location, indicating that Endless Summer Sweets retains control over when and where a franchise can open. While not explicitly stated as a 'written approval', the need for a separate franchise agreement and adherence to Endless Summer Sweets's pre-opening guidelines effectively functions as a condition for opening the business.