What is the consequence if a Crisp & Green restaurant is not open within 9 months of the Effective Date?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
However, pursuant to Section 6.02, in the event your Franchised Restaurant is not open and operating in compliance with our standards within nine (9) months after the Effective Date and we have not granted you an extension, you will be required to pay us the Minimum Royalty Fee (as defined in Section 6.02) for each month until your Restaurant opens (pro-rated for partial months). Additionally, if the Franchised Restaurant does not open for operation in compliance with our standards within nine (9) months after the Effective Date, unless you have received an approved extension, we may terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee must open their restaurant within nine months of the Effective Date. If the restaurant is not open and operating within that timeframe, and Crisp & Green has not granted an extension, the franchisee will be required to pay the Minimum Royalty Fee for each month until the restaurant opens, with the fee being pro-rated for partial months.
In addition to the Minimum Royalty Fee, Crisp & Green retains the right to terminate the Franchise Agreement if the restaurant does not open within the initial nine-month period, provided no extension has been approved.
Crisp & Green may grant extensions at their sole discretion if they determine the franchisee is making a good faith effort to complete the site development and opening process. The fee for such an extension can be up to $5,000. It is important for prospective franchisees to maintain open communication with Crisp & Green during the development phase to avoid penalties or termination.