What conditions must a Crisp & Green franchisee meet to get approval for a transfer?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
(i) we must not have disapproved the material terms and conditions of such transfer (including the price and terms of payment) on the basis that they are so burdensome as to be likely, in our judgment, to adversely affect the transferee's operation of the Franchised Restaurant or its compliance with its franchise agreements and any development agreements;
(j) if you (or any of your Principal Owners or Affiliates) finance any part of the sale price of the transferred interest, you and/or your Principal Owners or Affiliates must agree that all
obligations of the transferee, and security interests reserved by any of them in the assets of the Franchised Restaurant, will be subordinate to the transferee's obligations to pay all amounts due us and our Affiliates and to otherwise comply with this Agreement or the new franchise agreement executed by the transferee;
(k) you (and your Immediate Family) will not, for two (2) years beginning on the transfer's effective date, engage in any of the activities proscribed in Section 16.03 below; and
(l) you and your Principal Owners and Affiliates must execute such other documents and do such other things as we may reasonably require to protect our rights under this Agreement and under any development agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, a franchisee needs to meet several conditions to get approval for a transfer. Crisp & Green must not disapprove of the material terms and conditions of the transfer, including the price and terms of payment. Disapproval can occur if the terms are so burdensome that they are likely to adversely affect the transferee's operation of the franchised restaurant or their compliance with franchise agreements and any development agreements.
Additionally, if the franchisee (or any of their Principal Owners or Affiliates) finances any part of the sale price, they must agree that all obligations of the transferee and any security interests they reserve in the assets of the franchised restaurant will be subordinate to the transferee's obligations to pay all amounts due to Crisp & Green and its Affiliates. This also includes compliance with the Franchise Agreement or any new franchise agreement executed by the transferee.
Furthermore, the franchisee (and their Immediate Family) must agree not to engage in any activities proscribed in Section 16.03 for two years following the transfer's effective date. Finally, the franchisee, their Principal Owners, and Affiliates must execute any other documents and perform any other actions that Crisp & Green may reasonably require to protect its rights under the Franchise Agreement and any development agreement. These conditions ensure that the transfer does not negatively impact the Crisp & Green system or its financial interests.