What is the deadline for opening a Crisp & Green Franchised Restaurant after signing the Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ry requirements, and other similar factors.
You must open your Franchised Restaurant for business no later than nine months after the Franchise Agreement is signed. (If you have signed an Area Development Agreement, you must open your first Franchised Restaurant no later than nine months after your first Franchise Agreement is signed and each of your subsequent Franchised Restaurants according to the opening deadlines set forth in the Area Development Agreement that you will sign at the same time you sign your first Franchise Agreement.) You must also provide us with at least 30 days advance notice of your proposed opening date. Once you have provided us with your proposed opening date and we have approved it, if you thereafter delay your opening without our approval, you will be responsible to pay an extension fee of $1,000 per day for each day that you delay your opening date in order to cover our costs for modified training and support for your opening.
We may, but are not obligated to, grant you an extension of the deadline for opening your Franchised Restaurant if we determine, in our sole discretion, that you are expending good faith best efforts to complete each phase of the site development and opening process and pay a fee for the extension of up to $5,000. However, in the event your Franchised Restaurant is not open and operating by the required opening date, you will be required to pay us a minimum royalty payment of $7,500 per month, plus 7% of any Gross Sales you receive, for each month until your Franchised Restaurant opens (pro-rated for partial months). Additionally, if the Franchised Restaurant does not open for operation in compliance with our standards by the required opening date, unless you have received an approved extension, we may terminate the Franchise Agreement.
If you purchased the rights to develop three or more Restaurants under an Area Development Agreement, you and we will agree on a timeline for opening the Franchised Restaurants, which will be set forth in the Area Development Agreement that you will sign at the same time you sign your first Franchise Agreement. Under the timeline, you will be required to open your first Franchised Restaurant within nine months after execution of the Area Development Agreement, and then you typically will be required to open each subsequent Franchised Restaurant every nine months after that until you have met your tota
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–44)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee must open their restaurant for business no later than nine months after signing the Franchise Agreement. The FDD notes that the typical length of time between signing the Franchise Agreement and opening the restaurant is approximately six to nine months.
However, this timeline can be affected by various factors, including the time it takes to select an approved site, negotiate a lease, secure financing, obtain building permits, and complete necessary leasehold improvements. Other potential factors include zoning and local ordinances, construction delays, weather conditions, and compliance with local regulatory requirements.
If a franchisee anticipates delays, Crisp & Green may grant an extension of the opening deadline if they determine the franchisee is making a good faith effort to complete the site development and opening process. However, Crisp & Green may charge a fee of up to $5,000 for this extension. If the restaurant is not open by the required date and an extension has not been approved, the franchisee will be required to pay a minimum royalty payment of $7,500 per month, plus 7% of any Gross Sales, until the restaurant opens. Additionally, Crisp & Green may terminate the Franchise Agreement if the restaurant does not open by the required date, unless an extension has been approved.
For franchisees who purchase rights to develop three or more restaurants under an Area Development Agreement, a timeline for opening the restaurants will be established in the Area Development Agreement. Typically, the first restaurant must open within nine months after the execution of the Area Development Agreement, with each subsequent restaurant opening every nine months thereafter until the total commitment is met. Regardless of the specific opening date, the franchisee must provide Crisp & Green with at least 30 days advance notice of their proposed opening date.