Does Crisp & Green charge a fee for the transfer of interest in the Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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- We will not charge you any fee in connection with your Transfer of your interest in this Agreement. However, as a condition to our approval of any Transfer, you must sign Franchise Agreements for all of the Franchised Restaurants to be developed under this Agreement, you must transfer all of those agreements to the same person or entity that acquires your interest in this Agreement, and you must comply with all of the conditions for transferring each of those agreements, including any requirement to pay a transfer fee in connection with the transfer of each of those agreements.
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- The restriction on Transfer contained in this Agreement does not apply to, or otherwise restrict, your right to transfer any interest in any Franchise Agreement you previously signed for any Franchised Restaurant to be developed under this Agreement. You may transfer those agreements apart from any rights you have in this Agreement, provided you comply with the transfer provisions of each agreement you seek to transfer.
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- We may expand upon, and provide more details related to, the conditions for Transfer and our consent as described in this Section 7, and may do so in our operations manual or otherwise in writing.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green does not charge a fee for the transfer of interest in the Area Development Agreement. However, as a condition of approval for any transfer, the developer must sign Franchise Agreements for all franchised restaurants to be developed under the Area Development Agreement. These agreements must be transferred to the same person or entity acquiring the interest in the Area Development Agreement. Additionally, the developer must comply with all conditions for transferring each of those Franchise Agreements, including paying any required transfer fees associated with each individual Franchise Agreement.
This means that while there's no direct fee to transfer the Area Development Agreement itself, a franchisee will likely incur transfer fees when they transfer the individual Franchise Agreements associated with each restaurant they are developing. This could potentially add a significant cost to the overall transfer process, depending on the number of restaurants involved and the transfer fees associated with each Franchise Agreement.
It is important to note that the restriction on transferring the Area Development Agreement does not limit the right to transfer any interest in any Franchise Agreement previously signed for any Franchised Restaurant to be developed under the Area Development Agreement. The franchisee may transfer those agreements separately, provided they comply with the transfer provisions of each agreement they seek to transfer. Crisp & Green may also expand upon the conditions for transfer and their consent in the operations manual or in writing.