Training

MGM Wine & Spirits provides several structured training programs for franchisees to ensure the successful operation of their stores. These include:

1. Initial Training Program: Before opening a franchised store, the franchisor provides a two-week program that combines classroom and in-store training. This training is mandatory for the franchisee or their designated manager and must be completed satisfactorily. While the program itself is free, the franchisee is responsible for any travel and living expenses. The training may take place at a location chosen by the franchisor within the U.S.
2. Pre-Opening Training: Conducted approximately 30 to 90 days before the store opens, this training includes both company-owned and in-store sessions. It is also required that both the franchisee and any designated manager complete it. Manuals are used as the primary instructional materials. This training is periodically repeated throughout the year to align with the opening schedules of new franchised stores.
3. Refresher and Remedial Training: If a franchisee fails to maintain operational standards, the franchisor reserves the right to send trainers to provide additional support. Costs associated with this remedial training, including travel and wages of the trainers, are the responsibility of the franchisee.

Territory Protection

MGM Wine & Spirits provides limited territory protection to its franchisees. Each franchise is granted a one-mile designated area where no other MGM Wine & Spirits store will be opened or franchised. This area is defined from the store’s front entrance by the shortest automobile route.

However, the franchisor may operate or license similar businesses outside this territory, even if they compete for the same customers. The protection ends if the store relocates or closes, unless a new territory agreement is signed. Thus, the territorial rights are specific, fixed, and conditional.