What is the 'Development Schedule' and what is the developer's obligation regarding it for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
t control the establishment and operation of the Franchised Restaurant.
- 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.
3. DEVELOPMENT SCHEDULE.
The following provisions control with respect to your development rights and obligations:
- A. You must comply with the Development Schedule requirements regarding: (i) the execution of the Franchise Agreements; (ii) the opening date for each Franchised Restaurant; and (iii) the cumulative number of Franchised Restaurants to be open and continuously operating for business in the Development Area. If you fail to either sign a Franchise Agreement or to open a Franchised Restaurant according to the dates set forth in the Development Schedule, we, in our sole discretion, may immediately terminate this Agreement under Section 5, or alter your Development Area as described in Section 1.C.
- B.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Development Schedule outlines the developer's obligations regarding the execution of Franchise Agreements, the opening dates for each Franchised Restaurant, and the cumulative number of Franchised Restaurants that must be open and continuously operating in the Development Area. The developer agrees to be bound by the Development Schedule outlined in the Rider, with time being of the essence for both signing each Franchise Agreement and developing each Franchised Restaurant. Each restaurant must be operated under a separate Franchise Agreement entered into with Crisp & Green. For a restaurant to count toward compliance with the Development Schedule, it must be open and continuously operating for at least the first six months after opening.
If the developer fails to sign a Franchise Agreement or open a Franchised Restaurant according to the dates in the Development Schedule, Crisp & Green has the right to terminate the Area Development Agreement or alter the Development Area. However, Crisp & Green may choose to replace any portion of the Development Area not covered by a fully executed Franchise Agreement if the developer demonstrates the intent and ability to execute the next Franchise Agreement required by the Development Schedule.
The developer must sign the Franchise Agreement for the first Franchised Restaurant concurrently with the Area Development Agreement. A separate Franchise Agreement must be signed for each subsequent Franchised Restaurant, consistent with the Development Schedule. The terms and conditions of each Franchise Agreement will govern the establishment and operation of that Franchised Restaurant. The developer is responsible for identifying and securing specific sites for each Franchised Restaurant, subject to Crisp & Green's approval.
Prospective developers should carefully review the Development Schedule in the Rider to fully understand their obligations and the potential consequences of failing to meet those obligations. They should also inquire about the criteria Crisp & Green uses to evaluate a developer's 'intent and ability' to execute future Franchise Agreements, as this could impact Crisp & Green's decision to alter the Development Area instead of terminating the agreement.