For Crisp & Green, is the Development Fee considered payment for the Development Agreement or for any individual Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
You must pay us a Development Fee in the amount set forth in the Rider. This fee is payable in full when you sign this Agreement. However, you will not be required to pay an initial franchise fee for any of the Franchised Restaurants you develop under this Agreement.
- 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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Development Fee is specifically tied to the Development Agreement, not to individual Franchise Agreements. The Development Fee amount is detailed in the Rider and is due in full upon signing the Development Agreement. A key benefit for the franchisee is that they will not have to pay an initial franchise fee for each restaurant they develop under the Development Agreement.
Crisp & Green considers the Development Fee fully earned upon the execution of the Development Agreement, and it is nonrefundable. This means that if a franchisee fails to develop the number of restaurants outlined in the Development Schedule or chooses not to proceed with development, they will not receive a refund of the Development Fee or any portion of it.
Each Franchised Restaurant developed under the Development Agreement requires a separate Franchise Agreement. The Franchise Agreement for the first restaurant is signed concurrently with the Development Agreement, and subsequent Franchise Agreements are signed as each restaurant is identified according to the Development Schedule. Once a Franchise Agreement is executed, its terms and conditions govern the establishment and operation of that specific Crisp & Green restaurant. This clarifies that while the Development Fee covers the development rights, each restaurant's operation is controlled by its own Franchise Agreement.