What is the dependency between the Development Agreement and the Franchise Agreement for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provisions control with respect to your development rights and obligations:
- A. You must comply with the Development Schedule requirements regarding: (i) the execution of the Franchise Agreements; (ii) the opening date for each Franchised Restaurant; and (iii) the cumulative number of Franchised Restaurants to be open and continuously operating for business in the Development Area. If you fail to either sign a Franchise Agreement or to open a Franchised Restaurant according to the dates set forth in the Development Schedule, we, in our sole discretion, may immediately terminate this Agreement under Section 5, or alter your Development Area as described in Section 1.C.
- B. You may not open a Franchised Restaurant under this Agreement unless you meet each of the following conditions (these conditions apply to each Franchised Restaurant to be developed in the Development Area):
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- You must not be in default of this Agreement, any Franchise Agreement entered into under this Agreement, or any other agreement between you or any of your Affiliates and us or any of our Affiliates. You also must have satisfied on a timely basis all monetary
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and material obligations under the Franchise Agreements for all existing Franchised Restaurants.
You and we have entered into our then-current form of Franchise Agreement and such other agreements that we require for the grant of CRISP & GREEN franchises for the proposed Franchised Restaurant.
You understand that we may modify the then-current form of Franchise Agreement from time to time and that it may be different than the current form of Franchise Agreement, including different fees and obligations; provided, however, that you will not be required to pay any initial franchise fee under any of those agreements.
You understand and agree that any and all Franchise Agreements will be construed and exist independently of this Agreement.
The continued existence of each Franchise Agreement will be determined by the terms and conditions of the Franchise Agreement.
Except as specifically set forth in this Agreement, the establishment and operation of each Franchised Restaurant must be in accordance with the terms of the applicable Franchise Agreement.
You will be solely responsible for identifying, submitting for our approval, and securing specific sites for each Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, a Development Agreement grants the franchisee the rights to develop and operate a certain number of Crisp & Green restaurants within a specific territory, according to a set development schedule. Each restaurant must be operated under a separate Franchise Agreement. The Development Agreement outlines the conditions that must be met before a franchisee can open a restaurant, including not being in default of any agreements with Crisp & Green and entering into the then-current form of the Franchise Agreement. The franchisee is responsible for securing the site for each restaurant.
The Development Agreement and Franchise Agreements are treated as independent contracts. The continuation of each Franchise Agreement is determined by its own terms and conditions, meaning that the Development Agreement does not supersede the individual Franchise Agreements. The terms of the Franchise Agreement dictate the establishment and operation of each franchised restaurant, except as specifically outlined in the Development Agreement.
If a franchisee fails to meet the development schedule, Crisp & Green has the option to terminate the Development Agreement or alter the development area. However, franchisees are not required to pay an initial franchise fee for any restaurants developed under the Development Agreement. This structure allows Crisp & Green to expand its brand rapidly through area developers while maintaining control over individual restaurant operations through separate franchise agreements.