When is the Development Fee due and payable to Crisp & Green under the Area Development 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.
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 due in full when you sign the Area Development Agreement. The amount of this fee is specified in the Rider to the agreement. This fee compensates Crisp & Green for granting you development rights within a specific area.
Importantly, the Development Fee is not an initial franchise fee for any of the restaurants you develop under the Area Development Agreement. You will sign a Franchise Agreement for your first restaurant concurrently with the Area Development Agreement, and separate Franchise Agreements must be signed for each subsequent restaurant as it is identified, consistent with the Development Schedule.
The Development Fee is fully earned by Crisp & Green upon the execution of the Area Development Agreement and is nonrefundable. Therefore, if you fail to develop the number of restaurants outlined in the agreement, you will not receive any portion of the Development Fee back. This highlights the importance of carefully considering your ability to meet the development schedule before signing the Area Development Agreement and paying the Development Fee.