Does the Crisp & Green addendum affect the franchisee's ability to sell the franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- Section 7 of the Area Development Agreement is revised to include the following:
Franchisor will not make an assignment except to an assignee who, in Franchisor's good faith judgment, is willing and able to assume its obligations under the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the addenda for New York and Maryland do address the franchisee's ability to transfer the franchise.
Specifically, the New York addendum states that Crisp & Green will not make an assignment except to an assignee who, in Crisp & Green's good faith judgment, is willing and able to assume its obligations under the agreement. The Maryland addendum states that the general release language required as a condition of renewal, sale, and/or assignment or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
These addenda modify the standard franchise agreement to comply with state-specific franchise laws, particularly regarding the franchisor's assignment rights and franchisee's rights related to claims and releases during the transfer process. Therefore, prospective franchisees should carefully review the addendum specific to their state of operation to understand how it affects their rights and obligations when transferring their Crisp & Green franchise.