What are the Development Schedule requirements that Crisp & Green franchisees must comply with?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
nd 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. You may not open a Franchised Restaurant under this Agreement unless you meet each of the following conditions (these conditions apply to each Franchised Restaurant to be developed in the Development Area):
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- You must not be in default of this Agreement, any Franchise Agreement entered into under this Agreement, or any other agreement between you or any of your Affiliates and us or any of our Affiliates. You also must have satisfied on a timely basis all monetary
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and material obligations under the Franchise Agreements for all existing Franchised Restaurants.
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- You and we have entered into our then-current form of Franchise Agreement and such other agreements that we require for the grant of CRISP & GREEN franchises for the proposed Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, if a franchisee obtains development rights, they must adhere to the Development Schedule. This schedule outlines the requirements for executing Franchise Agreements, the opening dates for each franchised restaurant, and the total number of restaurants that must be open and operating within the Development Area.
Failure to meet the Development Schedule, either by not signing a Franchise Agreement or by not opening a restaurant as scheduled, gives Crisp & Green 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 franchisee demonstrates the intent and ability to execute the next Franchise Agreement as per the Development Schedule.
To maintain development rights and open a Crisp & Green restaurant, franchisees must not be in default of any agreements with Crisp & Green or its affiliates and must fulfill all monetary and material obligations for existing restaurants. A separate Franchise Agreement, consistent with the Development Schedule, is required for each restaurant. The terms of each Franchise Agreement will govern the establishment and operation of each franchised restaurant.
For the purposes of complying with the Development Schedule, only restaurants that are actually opened and continuously operated in the Development Area for at least six months after opening will be counted towards the required number of open and operating restaurants.