What conditions must a Crisp & Green franchisee meet before opening a Franchised Restaurant under the Development Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- B. You may not open a Franchised Restaurant under this Agreement unless you meet each of the following conditions (these conditions apply to each Franchised Restaurant to be developed in the Development Area):
-
- You must not be in default of this Agreement, any Franchise Agreement entered into under this Agreement, or any other agreement between you or any of your Affiliates and us or any of our Affiliates. You also must have satisfied on a timely basis all monetary
-
and material obligations under the Franchise Agreements for all existing Franchised Restaurants.
You and we have entered into our then-current form of Franchise Agreement and such other agreements that we require for the grant of CRISP & GREEN franchises for the proposed Franchised Restaurant.
You understand that we may modify the then-current form of Franchise Agreement from time to time and that it may be different than the current form of Franchise Agreement, including different fees and obligations; provided, however, that you will not be required to pay any initial franchise fee under any of those agreements.
You understand and agree that any and all Franchise Agreements will be construed and exist independently of this Agreement.
The continued existence of each Franchise Agreement will be determined by the terms and conditions of the Franchise Agreement.
Except as specifically set forth in this Agreement, the establishment and operation of each Franchised Restaurant must be in accordance with the terms of the applicable Franchise Agreement.
You will be solely responsible for identifying, submitting for our approval, and securing specific sites for each Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, a franchisee must meet specific conditions before opening a franchised restaurant under the Development Agreement. These conditions apply to each restaurant to be developed within the designated Development Area.
First, the franchisee must not be in default of the Development Agreement itself, any Franchise Agreement entered into under it, or any other agreement with Crisp & Green or its affiliates. This includes satisfying all monetary and material obligations under existing Franchise Agreements for all operating Crisp & Green restaurants in a timely manner. This implies that any existing financial or operational issues with current locations must be resolved before further expansion is permitted.
Second, the franchisee and Crisp & Green must enter into the then-current form of Franchise Agreement, along with any other agreements that Crisp & Green requires for granting franchises. The FDD specifies that the form of the Franchise Agreement may change over time, potentially including different fees and obligations. However, the franchisee will not be required to pay any initial franchise fee under these subsequent agreements. Each Franchise Agreement will be construed independently of the Development Agreement, with its continued existence determined by its own terms and conditions.
Finally, the franchisee is solely responsible for identifying, submitting for approval, and securing specific sites for each Crisp & Green restaurant. This places the onus on the franchisee to conduct market research, scout locations, and negotiate leases, all subject to Crisp & Green's approval. Failing to meet any of these conditions could prevent the franchisee from opening a new restaurant under the Development Agreement.