factual

Is Crisp & Green allowed to operate or franchise Crisp & Green Restaurants anywhere, regardless of location, outside the Designated Area?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

2.03 Our Reservation of Rights. Other than as set forth in Section 2.02 above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by CRISP & GREEN Restaurants, and the operation or franchising of CRISP & GREEN Restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Designated Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and

operate, and grant to others the right to operate, CRISP & GREEN Restaurants physically located outside the Designated Area, on such terms and conditions as we deem appropriate (you acknowledge that such CRISP & GREEN Restaurants may be in direct competition with your Franchised Restaurant, without regard to any adverse effects of such activities on your Franchised Restaurant and without any obligation or liability to you), which includes the right of us and others to perform Catering Services or Delivery Services in your Designated Area; (b) to establish and operate, and grant to others the right to operate, CRISP & GREEN Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Designated Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and physical outlets like kiosks, convenience stores or supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the CRISP & GREEN name and mark), pursuant to such terms and conditions as we deem appropriate and wherever such restaurants are located, which restaurants may be located within the Designated Area; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those provided at CRISP & GREEN Restaurants, and to franchise, license or create similar arrangements with respect to these businesses once acquired, and which businesses we may (at our sole discretion, and without obligation) convert, or allow to be converted, to operations as CRISP & GREEN Restaurants using any of the Marks and/or the System, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in your Designated Area, if applicable); and (f) to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at CRISP & GREEN Restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Designated Area.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, Crisp & Green retains significant rights regarding the operation and franchising of restaurants both within and outside a franchisee's designated area. Specifically, Crisp & Green has the right to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants physically located outside the Designated Area, under terms and conditions they deem appropriate. This includes the right to perform catering and delivery services within a franchisee's designated area.

This reservation of rights means that Crisp & Green is not restricted from opening or franchising new locations, including those that may compete directly with an existing franchisee's restaurant. The document explicitly states that such activities can occur 'without regard to any adverse effects of such activities on your Franchised Restaurant and without any obligation or liability to you'.

Furthermore, Crisp & Green reserves the right to establish and operate restaurants, including those using the Crisp & Green system or marks, at non-traditional sites both within and outside the designated area. They can also sell products or services under their trademarks through alternative channels of distribution, such as the internet, kiosks, or supermarkets, regardless of location. This extensive reservation of rights underscores the importance of a prospective franchisee understanding the competitive landscape and potential for encroachment, even if they have a designated area.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.