factual

What is the definition of an 'Approved Operator' for a Crisp & Green franchise?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

If you will operate multiple Franchised Restaurants pursuant to an Area Development Agreement, you must designate an operator who will be responsible for the day-to-day development and operations of multiple Franchised Restaurants (an "Approved Operator"). Unless we otherwise approve, your Operating Partner will be your Approved Operator. All approvals are given in our sole discretion, and we do not guarantee that you will be allowed to have an Approved Operator other than your Operating Partner. Your Approved Operator must meet qualification standards that we establish from time to time, must exert his or her full-time best efforts to the development and operations of your multiple locations, and must attend and complete Crisp Academy and all other training programs that we require from time to time. Your Approved Operator will be responsible for, among other things, supervising the General Managers of each of your Franchised Restaurants, meeting all development opening deadlines, and ensuring your Franchised Restaurants are operating in a uniform and efficient manner and complying with our Standards. If your Approved Operator is other than your Operating Partner, your Approved Operator must be your employee

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 50–51)

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, an Approved Operator is defined as the person responsible for the day-to-day development and operations of multiple Crisp & Green franchised restaurants, especially if the franchisee is developing multiple locations under an Area Development Agreement. Unless Crisp & Green approves otherwise, the Operating Partner will be the Approved Operator. However, Crisp & Green maintains sole discretion over these approvals and does not guarantee that a franchisee can designate someone other than the Operating Partner as the Approved Operator.

The Approved Operator must meet qualification standards established by Crisp & Green, dedicate their full-time efforts to developing and operating multiple locations, and complete Crisp Academy and any other required training programs. Their responsibilities include supervising the General Managers of each franchised restaurant, meeting development and opening deadlines, and ensuring that all restaurants operate uniformly, efficiently, and in compliance with Crisp & Green's standards. If the Approved Operator is not the Operating Partner, they must be an employee of the franchisee, subject to their supervision and direction.

The Approved Operator must have the authority to make operational decisions affecting the franchised restaurants and cannot engage in any other business activities that interfere with their role. If a General Manager or Approved Operator leaves their position, the franchisee must replace them within 30 days, begin training the replacement, and ensure they attend Crisp Academy. The franchisee is responsible for all related travel, living expenses, and wages for the replacement during training, as well as any per diem training fees charged by Crisp & Green.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.