Who defines the Designated Area for a Crisp & Green franchise once the Premises is approved?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
2.02 Your Designated Area. The Preliminary Designated Area identified on Exhibit B, if any, is the general location where you intend to secure the Premises for the Franchised Restaurant. If a Preliminary Designated Area is specified in Exhibit B, we will not grant anyone else the right to develop or operate a CRISP & GREEN Restaurant in the Preliminary Designated Area for 60 days from the Effective Date of this Agreement. Once the Premises has been approved by us, you hereby authorize us to define in Exhibit B a "Designated Area" around the Premises; provided that such Designated Area will generally consist of a geographic area illustrated on a map whose boundaries will be designated based on our current criteria for size, demographics, and topographical features. Once defined in Exhibit B, your Designated Area will remain constant throughout the initial Term of this Agreement (unless you relocate the Franchised Restaurant and upon renewal or transfer). During the Term, and subject to the following Section 2.03, we will not establish (directly or through an Affiliate), or grant to a third party the right to establish, a CRISP & GREEN Restaurant physically located within your Designated Area. You acknowledge and agree that we and our Affiliates have the right to develop and operate and grant others the right to develop and operate CRISP & GREEN Restaurants outside the Designated Area, regardless of their proximity to the Designated Area or any negative impact they may have on your Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, once the location (Premises) for the Franchised Restaurant is approved by Crisp & Green, the company is authorized to define the Designated Area. This Designated Area will be outlined in Exhibit B of the franchise agreement.
The Designated Area is determined based on Crisp & Green's criteria for size, demographics, and topographical features of the location. The defined Designated Area remains constant throughout the initial term of the agreement, unless the franchisee relocates the Franchised Restaurant or upon renewal or transfer of the franchise agreement.
During the term of the agreement, Crisp & Green will not establish or grant to a third party the right to establish a Crisp & Green Restaurant physically located within the franchisee's Designated Area. However, Crisp & Green retains the right to develop and operate Crisp & Green Restaurants outside the Designated Area, regardless of their proximity to the Designated Area or any potential negative impact on the franchisee's restaurant. This includes the right to perform catering services or delivery services in the franchisee's Designated Area.