What constitutes a 'failure to actively operate' a Crisp & Green Franchised Restaurant that could lead to termination?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) abandon or fail to actively operate the Franchised Restaurant for three (3) consecutive days, except where such failure to actively operate results solely from events constituting force majeure;
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee's failure to actively operate their franchised restaurant can lead to termination of the franchise agreement. Specifically, if a franchisee abandons or fails to actively operate the Crisp & Green restaurant for three consecutive days, this is grounds for termination.
However, there is an exception to this rule. If the failure to actively operate the restaurant results solely from events constituting force majeure, it will not be considered a breach of the franchise agreement. Force majeure typically refers to unforeseeable circumstances that prevent someone from fulfilling a contract, such as natural disasters, war, or government regulations.
This clause is important for prospective Crisp & Green franchisees to understand, as it highlights the importance of continuous operation. Franchisees need to ensure their restaurant remains open and active unless prevented by a force majeure event. Failure to do so could result in the termination of their franchise agreement.