What constitutes a 'Competitive Business' according to the Crisp & Green agreement?

According to Crisp & Green's 2024 Franchise Disclosure Document, a 'Competitive Business' is defined specifically within the context of the franchise agreement. It includes any business that operates as a restaurant or similar foodservice provider and generates more than 20% of its revenue from selling fresh salads and grain bowls. This definition extends to businesses operating in a fast-casual, quick-service, drive-thru, catering, or delivery format.

Furthermore, the definition encompasses businesses that grant franchises or licenses to others, allowing them to operate similar types of businesses. However, this excludes Crisp & Green-branded restaurants operated by the franchisor, its affiliates, or under a franchise agreement with Crisp & Green itself. This clause is designed to prevent franchisees or related parties from engaging in ventures that directly compete with the Crisp & Green system, thereby protecting the brand's market position and the integrity of its franchise network.

However, the agreement does allow for some exceptions. An individual is permitted to own less than 5% of a Competitive Business for investment purposes, provided that the stock or ownership interest is publicly traded on a recognized United States stock exchange. Additionally, neither the individual nor the franchisee can control the company in question. This exception acknowledges that franchisees may have investment portfolios that include minor holdings in publicly traded companies, even if those companies could be considered competitors.