When does the Crisp & Green Development Agreement expire, assuming it is not terminated earlier?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
erritory described in the Rider (the "Development Area").
- B. You agree to be bound by the "Development Schedule" set forth in the Rider. Time is of the essence for the development of each Franchised Restaurant under this Agreement and for the signing of each Franchise Agreement as set forth in the Development Schedule. Each Franchised Restaurant must be developed and operated by you under a separate Franchise Agreement that you enter into with us.
- C. Unless otherwise indicated in the Rider and except as set forth in Section D below or otherwise in this Agreement, if you are in compliance with this Agreement and any and all Franchise Agreement(s) you have with us, we will not develop or operate—or grant anyone else a franchise to develop and operate—a CRISP & GREEN Restaurant from any location
in the Development Area before the earlier of: (i) the expiration or termination of this Agreement; and (ii) the date on which you must sign the Franchise Agreement for your last Franchised Restaurant under the terms of the Development Schedule. Notwithstanding anything in this Agreement, when the earliest of the above events occurs: (i) the Development Area will expire; and (ii) we will be entitled to develop and operate—or to franchise others to develop and operate—CRISP & GREEN Restaurants from locations in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been signed between us and you and that has not been terminated.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document, the Development Agreement's expiration is determined by a few conditions. The agreement remains in effect as long as the developer is compliant and until the earliest of two events: either the agreement's stated expiration date or the date by which the franchisee is required to sign the Franchise Agreement for the final restaurant under the Development Schedule.
If a Crisp & Green developer fails to meet the milestones outlined in the Development Schedule, Crisp & Green has the option to modify the Development Area. Instead of terminating the agreement, Crisp & Green can remove portions of the Development Area that are not yet covered by a fully executed Franchise Agreement. In such cases, the removed territory can be replaced with new territory if the developer demonstrates the intent and ability to proceed with the next Franchise Agreement as per the Development Schedule.
Upon the occurrence of either the expiration or termination of the Development Agreement, or the date the franchisee should have signed the last Franchise Agreement, the Development Area expires. At this point, Crisp & Green is entitled to develop and operate, or franchise others to develop and operate, Crisp & Green restaurants within the former Development Area. However, any existing Franchise Agreements that are still in effect will continue to provide rights as specified in those individual agreements.