Will Crisp & Green countersign a Franchise Agreement or Area Development Agreement before receiving the results of the background and credit checks?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
elopment Agreement. After you apply to become a franchisee (for a single Restaurant or for multiple Restaurants under an Area Development Agreement) and after the expiration of the 14-day waiting period following your receipt of this disclosure document, you will be required to sign a letter of intent (the "LOI") to evidence your intention to continue towards execution of one or more Franchise Agreements with us. In connection with the LOI you will be required to submit to a background check which includes a criminal/civil record search and a credit
check. We will not countersign a Franchise Agreement or Area Development Agreement until we have received results of the search and check. If we determine that you are unsuitable to run a franchised Restaurant as a result of background check and credit check results, we reserve the right to not accept you as a franchisee and to terminate any agreements between us and you. An example of the LOI for a single territory is attached as Exhibit D to this disclosure document.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–26)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Crisp & Green will not countersign a Franchise Agreement or Area Development Agreement until they have received the results of the background and credit checks. After a prospective franchisee applies and the 14-day waiting period following receipt of the FDD expires, the applicant must sign a letter of intent. In connection with the letter of intent, the applicant must submit to a background check, including a criminal/civil record search and a credit check.
If the results of these checks are not satisfactory, Crisp & Green reserves the right to not accept the applicant as a franchisee and to terminate any agreements between them. This is a fairly standard practice in franchising, as franchisors need to ensure that their franchisees meet certain standards of financial responsibility and have no problematic background issues that could negatively impact the brand.
Prospective franchisees should be prepared to undergo these checks and should ensure they have a clear understanding of the criteria Crisp & Green uses to evaluate the results. It is important to address any potential issues proactively to avoid delays or potential rejection of the franchise application. The letter of intent for a single territory is included as Exhibit D to the FDD.