Can the Designated Area for a Crisp & Green franchise change during the initial term of the agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Designated Area is defined in Exhibit B of the Franchise Agreement, it generally remains constant throughout the initial term. However, there are specific circumstances under which the Designated Area may change.
One exception to the rule is if the franchisee relocates the Franchised Restaurant. In this case, the Designated Area may be redefined. Additionally, the Designated Area could be subject to change upon renewal or transfer of the franchise agreement.
It is important to note that Crisp & Green and its affiliates retain the right to develop and operate other Crisp & Green restaurants outside the franchisee's Designated Area, regardless of their proximity or potential negative impact on the franchisee's business. This highlights the importance of carefully evaluating the defined Designated Area and potential for outside competition before signing the Franchise Agreement.