Is Crisp & Green allowed to unreasonably withhold approval of a site that meets their criteria?

According to Crisp & Green's 2024 Franchise Disclosure Document, Crisp & Green will not unreasonably withhold approval of a site that meets their criteria. The criteria include demographic characteristics, traffic patterns, parking, the character of the neighborhood, competition from other businesses, the proximity to other businesses, the nature of other businesses, other commercial characteristics, and the proposed site's size, appearance, and other physical characteristics.

This means that if a prospective Crisp & Green franchisee identifies a location that satisfies all of Crisp & Green's stated requirements, Crisp & Green is contractually obligated to approve the site. This provision protects franchisees from arbitrary decisions by the franchisor that could impede their ability to open their restaurant. However, the FDD also states that the franchisee is responsible for identifying a site within a preliminary designated area that meets Crisp & Green's approval.

It is important to note that Crisp & Green must also approve the lease, sublease, or purchase contract for the premises. The lease must contain terms and provisions reasonably acceptable to Crisp & Green, and the franchisee and landlord must execute a standard form of lease addendum. The franchisee must send the fully signed site acquisition document and lease addendum to Crisp & Green within 10 days after approval. This ensures that the lease terms align with Crisp & Green's requirements and protects their brand standards.