What is the 'Development Area' defined as in the Crisp & Green development agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the Development Area is defined as the territory described in the Rider to the Development Agreement, within which the developer has the right to develop and operate a specified number of Crisp & Green restaurants. Crisp & Green grants these development rights to the developer under the terms and conditions outlined in the Development Agreement.
The agreement also stipulates that the developer must adhere to a Development Schedule, which is included in the Rider. This schedule sets the timeline for developing each franchised restaurant and signing the corresponding Franchise Agreement. Time is considered of the essence in meeting these development milestones. Each restaurant within the Development Area must be established and operated under a separate Franchise Agreement entered into between the developer and Crisp & Green.
Crisp & Green agrees not to develop or franchise another Crisp & Green restaurant within the Development Area, provided the developer complies with the Development Agreement and any existing Franchise Agreements. This exclusivity lasts until the earlier of the Development Agreement's expiration or termination, or the date the developer is required to sign the Franchise Agreement for the final restaurant under the Development Schedule. After this period, Crisp & Green reserves the right to develop or franchise restaurants within the Development Area, except as otherwise specified in any existing Franchise Agreements. If the developer fails to meet the Development Schedule, Crisp & Green may, at its discretion, remove portions of the Development Area not yet covered by a fully executed Franchise Agreement and replace it with territory identified when the developer demonstrates the ability to proceed with the next Franchise Agreement.