After applying to become a Crisp & Green franchisee, what is required in connection with the Letter of Intent?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
After you apply to become a franchisee (for a single Restaurant or for multiple Restaurants under an Area Development Agreement) and after the expiration of the 14-day waiting period following your receipt of this disclosure document, you will be required to sign a letter of intent (the "LOI") to evidence your intention to continue towards execution of one or more Franchise Agreements with us. In connection with the LOI you will be required to submit to a background check which includes a criminal/civil record search and a credit
check. We will not countersign a Franchise Agreement or Area Development Agreement until we have received results of the search and check. If we determine that you are unsuitable to run a franchised Restaurant as a result of background check and credit check results, we reserve the right to not accept you as a franchisee and to terminate any agreements between us and you. An example of the LOI for a single territory is attached as Exhibit D to this disclosure document.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–26)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, after applying to become a franchisee, whether for a single restaurant or multiple restaurants under an Area Development Agreement, and after the 14-day waiting period following receipt of the disclosure document, you must sign a letter of intent (LOI). This LOI demonstrates your intention to move forward with the execution of one or more Franchise Agreements with Crisp & Green. An example of the LOI for a single territory is attached as Exhibit D to the FDD.
In connection with the LOI, you are required to submit to a background check. This background check includes both a criminal/civil record search and a credit check. Crisp & Green will not countersign a Franchise Agreement or Area Development Agreement until they have received the results of these checks.
Crisp & Green reserves the right to not accept you as a franchisee and to terminate any agreements if the results of the background check and credit check indicate that you are unsuitable to run a franchised restaurant. This means that your application can be denied based on the findings of these checks, so it's important to be aware of this contingency.