Does Crisp & Green have to comply with applicable law regarding termination, cancellation, or nonrenewal of the Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary set forth in the Crisp & Green Franchising LLC Area Development Agreement, the following provisions shall supersede and apply to all Crisp & Green franchises offered and sold in the state of Minnesota:
This Minnesota Addendum is only applicable if you are a resident of Minnesota or if your business will be located in Minnesota.
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- Minn. Stat. Section 80C.21 and Minn. Rule 2860.4400J prohibit Franchisor from requiring litigation to be conducted outside Minnesota. In addition, nothing in this Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
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- Franchisor will comply with Minn. Stat. Section 80C.14, subds. 3, 4 and 5, which require, except in certain specified cases, that the Developer be given 90 days' notice of termination (with 60 days to cure).
ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF RHODE ISLAND
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- NON-RENEWAL AND TERMINATION. The following paragraph is added to the end of Sections 14.01 and 15.01:
Section 6-50-4 of the Rhode Island Fair Dealership Law includes the requirement that, in certain circumstances, a franchisee receive 90 days' notice of termination, cancellation, non-renewal or substantial change in competitive circumstances. The notice shall state all the reasons for termination, cancellation, non-renewal or substantial change in competitive circumstances and shall provide that the franchisee has 60 days in which to rectify any claimed deficiency and shall supersede the requirements of the Franchise Agreement to the extent they may be inconsistent with the Law's requirements. If the deficiency is rectified within 60 days the notice shall be void. The above-notice provisions shall not apply if the reason for termination, cancellation or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy. If the reason for termination, cancellation, nonrenewal or substantial change in competitive circumstances is nonpayment of sums due under the Franchise Agreement, Franchisee shall be entitled to written notice of such default, and shall have 10 days in which to remedy such default from the date of delivery or posting of such notice.
ADDENDUM TO CRISP & GREEN FRANCHISING LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE COMMONWEALTH OF VIRGINIA
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following language:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the franchise agreement or area development agreement does not constitute "reasonable cause;" as that term is defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
ADDENDUM TO CRISP & GREEN FRANCHISING LLC FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF MARYLAND
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following language:
The general release language required as a condition of renewal, sale and/or assignment or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
ADDENDUM TO THE CRISP & GREEN AREA DEVELOPMENT AGREEMENT FOR THE STATE OF NEW YORK
Notwithstanding anything to the contrary set forth in the Crisp & Green Franchising LLC Area Development Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Crisp & Green franchises offered and sold in the state of New York:
This New York Addendum is only applicable if you are a resident of New York or if your business will be located in New York.
- Section 9 of the Area Development Agreement is revised to include the following language:
Provided, however, that all rights arising under Franchisee's favor from the provisions of Article 33 of the GBL of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Section 687.4 and 687.5 be satisfied.
- The Area Development Agreement is modified by the addition of the following to Section 5:
In addition, Franchisee shall have the right to terminate the Area Development Agreement to the extent allowed under applicable law.
- (b) Termination of Agreement.
Notwithstanding anything to the contrary in the Agreement, we will comply with certain termination and nonrenewal rights that Minnesota law provides to franchisees.
As of the date of this Agreement, Minn.
Stat. § 80C.14, Subds. 3, 4 and 5 require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the franchise agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the franchise agreement is subject to state laws that provide certain rights to franchisees regarding termination, cancellation, and nonrenewal. Specifically, addenda for Minnesota, Rhode Island, Virginia, Maryland, and New York indicate that Crisp & Green must comply with those states' franchise laws, which may provide franchisees with specific protections and notice requirements. These addenda modify the franchise agreement to ensure compliance with state-specific regulations, particularly concerning termination and nonrenewal rights.
For instance, in Minnesota, Crisp & Green must comply with Minn. Stat. Section 80C.14, subds. 3, 4, and 5, which generally require 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal, except in certain cases. Similarly, in Rhode Island, Section 6-50-4 of the Rhode Island Fair Dealership Law mandates that franchisees receive 90 days' notice of termination, cancellation, non-renewal, or substantial change in competitive circumstances, with 60 days to rectify any claimed deficiency. The Rhode Island addendum also specifies a 10-day notice and cure period for nonpayment of sums due under the Franchise Agreement.
In Virginia, if any ground for default or termination stated in the franchise agreement does not constitute "reasonable cause" as defined in the Virginia Retail Franchising Act, that provision may not be enforceable. Maryland law stipulates that general release language required as a condition of renewal, sale, or transfer will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. In New York, the addendum ensures that all rights arising under Article 33 of the General Business Law (GBL) of the State of New York remain in force, satisfying the non-waiver provisions of GBL Sections 687.4 and 687.5. Additionally, franchisees in New York have the right to terminate the Area Development Agreement to the extent allowed under applicable law.
These addenda collectively ensure that Crisp & Green franchisees receive the protections afforded to them by state franchise laws, which often include specific notice and cure periods before termination or nonrenewal. Prospective franchisees should carefully review the addendum specific to their state to understand their rights and protections under the franchise agreement.