What is the exception to the abandonment rule for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- C. Unless otherwise indicated in the Rider and except as set forth in Section D below or otherwise in this Agreement, if you are in compliance with this Agreement and any and all Franchise Agreement(s) you have with us, we will not develop or operate—or grant anyone else a franchise to develop and operate—a CRISP & GREEN Restaurant from any location
in the Development Area before the earlier of: (i) the expiration or termination of this Agreement; and (ii) the date on which you must sign the Franchise Agreement for your last Franchised Restaurant under the terms of the Development Schedule. Notwithstanding anything in this Agreement, when the earliest of the above events occurs: (i) the Development Area will expire; and (ii) we will be entitled to develop and operate—or to franchise others to develop and operate—CRISP & GREEN Restaurants from locations in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been signed between us and you and that has not been terminated. If at any time you fail to comply with the Development Schedule, we may in lieu of terminating this Agreement, choose, in our sole discretion, to replace any portion of the Development Area that is not then part of a Designated Area under a fully executed Franchise Agreement with territory that will be identified at the time you demonstrate an intent and ability to execute the next Franchise Agreement called for under the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document, the exception to the abandonment rule relates to the Development Area granted to the franchisee. Crisp & Green grants the franchisee the right to develop and operate a specific number of Crisp & Green restaurants within a defined territory, known as the Development Area, according to the terms outlined in the Development Agreement.
However, Crisp & Green retains the right to develop or franchise others within the Development Area under certain conditions. Specifically, if the franchisee fails to comply with the Development Schedule, Crisp & Green may choose to replace portions of the Development Area not yet covered by a fully executed Franchise Agreement. This replacement would involve territory identified when the franchisee demonstrates the intent and ability to execute the next Franchise Agreement as required by the Development Schedule.
In essence, while the franchisee initially has exclusive development rights within the Development Area, these rights are contingent upon adhering to the Development Schedule. Failure to meet the schedule allows Crisp & Green to reclaim portions of the territory and potentially grant those rights to others. This clause ensures that Crisp & Green can continue expanding its brand even if a franchisee is not meeting their development obligations.