Can Crisp & Green condition or withhold consent regarding a franchisee's activities?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
greement called for under the Development Schedule.
If the Development Area covers more than one city, county, or designated market area, the protection granted under this Agreement for each particular city, county or designated market area will also expire on the date when we determine the designated area to be given to you under the franchise agreement for your final Franchised Restaurant to be developed in that city, county, or designated market area.
D. You acknowledge and agree that other than as set forth in Section C above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by Crisp & Green Restaurants, and the operation or franchising of Crisp & Green Restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Development Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants physically located outside the Development Area, on such terms and conditions as we deem appropriate (you acknowledge that such Crisp & Green Restaurants may be in direct competition with your Franchised Restaurant(s), without regard to any adverse effects of such activities on your Franchised Restaurant(s) and without any obligation or liability to you), which includes the right of us and others to perform Catering Services or Delivery Services in your Development Area; (b) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Development Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and physical outlets like kiosks, convenience stores or supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the Crisp & Green name and mark), pursuant to such terms and conditions as we deem appropriate and wherever such restaurants are located, which restaurants may be located within the Development Area; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those
provided at Crisp & Green Restaurants, and to franchise, license or create similar arrangements with respect to these businesses once acquired, and which businesses we may (at our sole discretion, and without obligation) convert, or allow to be converted, to operations as Crisp & Green Restaurants using any of the Marks and/or the System, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in your Development Area, if applicable); and (f) to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at Crisp & Green Restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Development Area.
2. DEVELOPMENT FEE.
You must pay us a Development Fee in the amount set forth in the Rider. This fee is payable in full when you sign this Agreement. However, you will not be required to pay an initial franchise fee for any of the Franchised Restaurants you develop under this Agreement.
- A. You will sign the Franchise Agreement for your first Franchised Restaurant concurrently with this Agreement. A separate Franchise Agreement must be signed for each Franchised Restaurant as it is identified, which must be consistent with the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green retains significant rights and discretion over various aspects of the business, including the use of trademarks, the system, and the sale of products and services. Crisp & Green can engage in any business activities, within or outside the Development Area, whenever and wherever they desire.
Specifically, Crisp & Green reserves the right to establish and operate Crisp & Green Restaurants outside the Development Area, on terms they deem appropriate, even if these restaurants compete directly with a franchisee's restaurant. They can also establish and operate restaurants, including those using the Crisp & Green system or marks, at Non-Traditional Sites within or outside the Development Area. Additionally, Crisp & Green can sell products or services under the Marks through alternative channels of distribution, such as the internet, kiosks, or supermarkets.
Furthermore, Crisp & Green's consent is required for franchisees to operate a Crisp & Go Location. Franchisees must ensure high-quality food and beverage products, maintain the location's condition and appearance, ensure delivery drivers comply with laws and maintain adequate insurance, and operate the location according to Crisp & Green's standards and procedures. The franchisee cannot relocate the Crisp & Go Location without prior written approval from Crisp & Green. Failure to comply with these provisions may result in temporary suspension or permanent termination of the right to operate the Crisp & Go Location.