In the Crisp & Green Area Development Agreement, what are the two parties involved and their designated titles?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
In consideration of the foregoing and the mutual covenants and consideration below, you and we agree as follows:
1. GRANT OF DEVELOPMENT RIGHTS.
The following provisions control with respect to the rights granted under this Agreement:
- A. We grant to you, under the terms and conditions of this Agreement, the right to develop and operate the number of CRISP & GREEN restaurants identified in the Rider (the "Franchised Restaurants"), using the Marks and System and operating within the territory described in the Rider (the "Development Area").
- B. You agree to be bound by the "Development Schedule" set forth in the Rider. Time is of the essence for the development of each Franchised Restaurant under this Agreement and for the signing of each Franchise Agreement as set forth in the Development Schedule. Each Franchised Restaurant must be developed and operated by you under a separate Franchise Agreement that you enter into with us.
- C. Unless otherwise indicated in the Rider and except as set forth in Section D below or otherwise in this Agreement, if you are in compliance with this Agreement and any and all Franchise Agreement(s) you have with us, we will not develop or operate—or grant anyone else a franchise to develop and operate—a CRISP & GREEN Restaurant from any location
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the two parties involved in the Area Development Agreement are Crisp & Green Franchising LLC, designated as the Franchisor, and the individual or entity granted development rights, referred to as the Franchisee or Developer. This agreement grants the franchisee the right to develop and operate a specified number of Crisp & Green restaurants within a defined territory, known as the Development Area, under the terms and conditions outlined in the agreement.
The agreement stipulates that the franchisee must adhere to a Development Schedule, which outlines the timeline for opening each restaurant. Each restaurant must be operated under a separate Franchise Agreement entered into between the franchisee and Crisp & Green. The franchisor agrees not to develop or franchise others to develop a Crisp & Green restaurant within the Development Area, as long as the franchisee complies with the Area Development Agreement and any existing Franchise Agreements.
However, Crisp & Green retains the right to develop or franchise others outside the Development Area, regardless of proximity or potential impact on the franchisee's restaurants. If the franchisee fails to meet the Development Schedule, Crisp & Green has the option to modify the Development Area by removing portions not yet covered by a fully executed Franchise Agreement. This ensures Crisp & Green can continue expanding its brand, even if a developer is underperforming.