What is the developer's obligation regarding the Development Schedule for Crisp & Green restaurants?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
nd operation of the Franchised Restaurant.
- B. The Development Fee is consideration for this Agreement and not consideration for any Franchise Agreement, is fully earned by us upon execution of this Agreement, and is nonrefundable. If you fail or choose not to develop any Franchised Restaurant that is permitted under this Agreement, you will not be entitled to any return or refund of the Development Fee or any portion thereof.
3. DEVELOPMENT SCHEDULE.
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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, developers must adhere to the Development Schedule outlined in the Rider, which is a crucial part of the Area Development Agreement. This schedule specifies the dates for signing Franchise Agreements and opening each Crisp & Green restaurant within the designated Development Area. It also dictates the cumulative number of restaurants that must be open and continuously operating. Time is of the essence, meaning these deadlines are strictly enforced.
Failure to meet the Development Schedule can lead to significant consequences. Crisp & Green reserves the right to terminate the Area Development Agreement or alter the Development Area if the developer fails to sign a Franchise Agreement or open a restaurant by the specified dates. However, Crisp & Green may choose to replace a portion of the Development Area not covered by a fully executed Franchise Agreement with territory that will be identified when the developer demonstrates the intent and ability to execute the next Franchise Agreement.
To be counted towards compliance with the Development Schedule, a Crisp & Green restaurant must be open and continuously operating in the Development Area for at least the first six months after its opening. This requirement ensures that only actively running locations contribute to fulfilling the developer's obligations. This clause protects Crisp & Green from developers who might open locations briefly just to meet the letter of the agreement, without establishing a sustainable business.