What access must a Crisp & Green franchisee provide to Crisp & Green, its agents, and the Appraiser after an Appraisal Notice?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- (a) Upon termination or expiration (without renewal) of this Agreement, we have the right, exercisable by giving notice thereof ("Appraisal Notice") within ten (10) days after the date of such termination or expiration, to require that a determination be made of the "Agreed Value" (as defined below) of all the personal property used in the Franchised Restaurant which you own, including inventory of non-perishable products, materials, supplies, furniture, equipment, signs, but excluding any cash and short-term investments and any items not meeting our specifications for Restaurants (the "Purchased Assets"). Upon such notice, you may not sell or remove any of the personal property of the Franchised Restaurant from the Premises and must give us, our designated agents and the "Appraiser" (as defined below) full access to the Franchised Restaurant and all of your books and records at any time during customary business hours in order to conduct inventories and determine the purchase price for the Purchased Assets.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, if Crisp & Green exercises its option to purchase the franchised restaurant upon termination or expiration of the franchise agreement, the franchisee must provide specific access. After Crisp & Green provides an Appraisal Notice, the franchisee cannot sell or remove any personal property from the restaurant premises.
Specifically, the franchisee must grant Crisp & Green, its designated agents, and the Appraiser full access to the franchised restaurant. This access is required at any time during customary business hours. The purpose of this access is to allow them to conduct inventories and determine the purchase price for the Purchased Assets, which include all the personal property used in the Franchised Restaurant which you own, including inventory of non-perishable products, materials, supplies, furniture, equipment, signs, but excluding any cash and short-term investments and any items not meeting Crisp & Green's specifications for Restaurants.
This requirement ensures that Crisp & Green can accurately assess the value of the assets they are considering purchasing. For a prospective franchisee, this means understanding that upon termination or expiration of the agreement, Crisp & Green has the right to purchase the restaurant's assets, and the franchisee must cooperate fully in the appraisal process by providing unrestricted access and maintaining the assets in place.