What are the consequences of failing to submit site surveys and construction plans to Crisp & Green for approval?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
t our prior approval.
You are responsible for developing the Franchised Restaurant at your expense. It is your responsibility to prepare all required construction and remodeling plans and specifications to suit the Restaurant and to make sure that they comply with federal, state, or local laws and regulations, including the Americans with Disabilities Act (the "ADA") and similar rules governing public accommodations for persons with disabilities, other applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. You must submit all site surveys, construction and remodeling plans, and specifications to us for our approval before beginning build-out for the Franchised Restaurant and all revised or "as built" plans and specifications during construction and development. You must obtain a site survey from one of our approved vendors. We have a required architectural vendor who you must use for the creation of the architectural plans for your Franchised Restaurant.
You must open the Franchised Restaurant in compliance with our standards within nine months after the date of your Franchise Agreement. If you have signed an Area Development Agreement, you must open your first Franchised Restaurant in compliance with our standards within nine months after the date of your first Franchise Agreement and each of your subsequent Franchised Restaurants in compliance with our standards according to the opening deadlines set forth in the Area Development Agreement you will sign at the same time you sign your first Franchise Agreement.
Your obligation to complete construction of the Franchised Restaurant includes obtaining all required construction and occupancy licenses and permits, developing the premises (including all outdoor features and landscaping of the premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things required by the Franchise Agreement or by practical necessity to have the Franchised Restaurant ready to open for business by the required opening date. You must give us at least 30 days' prior notice of the date on which you plan to open the Franchised Restaurant. You may not open the Franchised Restaurant for business until we have notified you that the Franchised Restaurant meets our requirements for opening, including payment in full of the initial franchise fee and all other amounts then owing to us, successful completion of Crisp Academy, and our receipt of your certificates of insurance.
We may, but are not obligated to, grant you extensions of any opening deadlines if we determine, in our sole discretion, that you are expending good faith best efforts to complete site development and the opening process and pay a fee for the extension of up to $5,000.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are responsible for developing their Franchised Restaurant at their own expense. This includes preparing all required construction and remodeling plans and specifications to ensure compliance with federal, state, and local laws, including the Americans with Disabilities Act. Franchisees must submit all site surveys, construction and remodeling plans, and specifications to Crisp & Green for approval before starting the build-out. They must also submit any revised plans during construction and development. A required architectural vendor must be used for the creation of the architectural plans.
Failure to adhere to these requirements can lead to delays in opening the Franchised Restaurant. Franchisees must open their restaurant within nine months after the date of the Franchise Agreement, or according to the deadlines in the Area Development Agreement. If the restaurant does not open on time and an extension has not been granted, Crisp & Green may require the franchisee to pay a Minimum Royalty Fee of $7,500 plus 7% of Gross Sales for each month until the restaurant opens in compliance with their standards. This fee is prorated for partial months.
Furthermore, if the Franchised Restaurant does not open by the required date, and without an approved extension, Crisp & Green reserves the right to terminate the Franchise Agreement. This highlights the importance of adhering to the franchisor's standards and timelines for site development and construction. Obtaining necessary approvals and complying with the franchisor's requirements are critical to avoid financial penalties and potential termination of the franchise agreement.
While the FDD excerpt specifies the penalties for failing to open on time, it does not explicitly detail the consequences of failing to submit site surveys and construction plans for approval before build-out. It is implied that this would lead to a delay in opening, triggering the penalties mentioned above. A prospective franchisee should clarify with Crisp & Green the specific ramifications of starting construction without prior approval of the site surveys and construction plans.