Can Crisp & Green establish restaurants outside the Development Area that compete with the developer's Crisp & Green Franchised Restaurants?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
D. You acknowledge and agree that other than as set forth in Section C above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by Crisp & Green Restaurants, and the operation or franchising of Crisp & Green Restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Development Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants physically located outside the Development Area, on such terms and conditions as we deem appropriate (you acknowledge that such Crisp & Green Restaurants may be in direct competition with your Franchised Restaurant(s), without regard to any adverse effects of such activities on your Franchised Restaurant(s) and without any obligation or liability to you), which includes the right of us and others to perform Catering Services or Delivery Services in your Development Area; (b) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Development Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and physical outlets like kiosks, convenience stores or supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the Crisp & Green name and mark), pursuant to such terms and conditions as we deem appropriate and wherever such restaurants are located, which restaurants may be located within the Development Area; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Crisp & Green retains the right to establish and operate Crisp & Green Restaurants outside a developer's designated area. These restaurants may directly compete with the developer's Franchised Restaurant(s). This includes the right for Crisp & Green and others to perform Catering Services or Delivery Services in the developer's Development Area.
This means that while a developer is granted rights to develop and operate within a specific Development Area, Crisp & Green maintains control over its brand and can expand outside that area without obligation to the developer. This could impact the developer's revenue if Crisp & Green opens competing locations nearby.
Crisp & Green also reserves the right to establish restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Development Area. They can also sell any products or services under the Marks through alternative channels of distribution, wherever located or operating.
Furthermore, Crisp & Green has the right to operate restaurants identified by trademarks other than the Crisp & Green name within the Development Area. They can also acquire businesses providing similar products/services and convert them to Crisp & Green restaurants, even within the Development Area. Finally, Crisp & Green can be acquired by another business that operates competitive businesses in the Development Area.