What is the amount of the Minimum Royalty Fee for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
of business on the first business day of each calendar month with respect to the Gross Sales accrued during the most recently ended calendar month before the payment date.
If the Franchised Restaurant is not open and operating in compliance with our standards within nine (9) months after the Effective Date and we have not granted you an extension, you will be required to pay us Seven Thousand Five Hundred Dollars ($7,500) plus seven percent (7%) of your Gross Sales per month (the "Minimum Royalty Fee") as and for royalty fees for each month until your Restaurant opens in compliance with our standards (pro-rated for partial months). Additionally, if the Franchised Restaurant does not open for
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are subject to a minimum royalty fee under certain conditions. Specifically, if a Crisp & Green restaurant is not open and operating in compliance with the franchisor's standards within nine months of the franchise agreement's effective date, and if no extension has been granted, the franchisee must pay a minimum royalty fee.
The minimum royalty fee is $7,500 per month, plus 7% of the restaurant's gross sales. This fee is charged monthly until the restaurant opens and operates in compliance with Crisp & Green's standards. The fee is pro-rated for any partial months.
This condition is significant for prospective franchisees as it creates a financial incentive to open the restaurant promptly. Failure to meet the opening deadline results in a substantial monthly fee, potentially impacting profitability. Additionally, the FDD states that Crisp & Green may terminate the franchise agreement if the restaurant does not open within the specified timeframe, unless an extension has been approved.