What is the Development Area defined as in the Crisp & Green agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
e the Marks and the System. You recognize that while you will have certain limited rights to transfer your interest in this Agreement, and in the Franchised Restaurants you develop, we are entering into this Agreement with you based on your representation that you intend to personally develop all of the Franchised Restaurants described in this Agreement, and not with a view to reselling your right to open these Franchised Restaurants.
AGREEMENTS:
In consideration of the foregoing and the mutual covenants and consideration below, you and we agree as follows:
1. GRANT OF DEVELOPMENT RIGHTS.
The following provisions control with respect to the rights granted under this Agreement:
- A. We grant to you, under the terms and conditions of this Agreement, the right to develop and operate the number of CRISP & GREEN restaurants identified in the Rider (the "Franchised Restaurants"), using the Marks and System and operating within the territory 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)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Development Area is defined as the territory described in the Rider to the Area Development Agreement, within which the developer has the right to develop and operate a specified number of Crisp & Green restaurants. The developer must adhere to a Development Schedule outlined in the Rider, with time being of the essence for developing each restaurant and signing individual Franchise Agreements. Each restaurant within the Development Area requires a separate Franchise Agreement between the developer and Crisp & Green.
Crisp & Green will not develop or franchise others to develop a restaurant within the Development Area as long as the developer complies with the Area Development Agreement and any Franchise Agreements, until the agreement expires or terminates, or until the date the Franchise Agreement for the last restaurant in the Development Schedule must be signed. Once the earliest of these events occurs, the Development Area expires, and Crisp & Green is entitled to develop or franchise others in that area, unless otherwise specified in an existing Franchise Agreement.
If the developer fails to meet the Development Schedule, Crisp & Green may choose to remove portions of the Development Area not yet covered by a Franchise Agreement and replace it with territory identified when the developer demonstrates the intent and ability to proceed with the next Franchise Agreement. This clause ensures that Crisp & Green can continue expanding even if a developer is underperforming, while also giving the developer an opportunity to adjust their development plans.