What exhibit to the Crisp & Green Franchise Agreement defines the Designated Area?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
You are permitted to operate the Franchised Restaurant only at an approved site. If the Franchised Restaurant's lease expires or is terminated without your fault, or if the Franchised Restaurant is destroyed, condemned, or otherwise rendered unusable, we may allow you to relocate the Franchised Restaurant to a new site acceptable to us at your sole expense.
Once the site for your Franchised Restaurant has been approved by us and added to the Franchise Agreement as the premises, we will define your "Designated Area" in Exhibit B to the Franchise Agreement. Your Designated Area will generally consist of a one- to three-mile radius around the site of your Franchised Restaurant (although this may be less in densely populated areas) and will be illustrated on a map. The size and shape of your Designated Area will be based on our current criteria for size, demographics, and topological features.
As long as you are in compliance with the Franchise Agreement and all other agreements between you and your affiliates, on the one hand, and us or one or more of our affiliates, on the other hand, we will not operate (directly or through an affiliate), or grant a third party the right to operate, a Restaurant within your Designated Area (other than at Non-Traditional Sites, as defined below) during the term of the Franchise Agreement. Other than as described in the immediately preceding sentence, your rights under the Franchise Agreement and Area Development Agreement are non-exclusive, meaning that our and our affiliates' activities are unrestricted. By way of example and without limitation, we and our affiliates are permitted, and we specifically reserve the right, to:
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Designated Area for a franchised restaurant is defined in Exhibit B to the Franchise Agreement. Once Crisp & Green approves the site for a franchisee's restaurant, the location will be added to the Franchise Agreement as the premises, and the Designated Area will be defined in Exhibit B.
The Designated Area typically consists of a radius of one to three miles around the restaurant's location. However, this radius may be smaller in densely populated areas. The size and shape of the Designated Area are determined by Crisp & Green based on their criteria for size, demographics, and topological features.
It's important to note that while Crisp & Green will not operate or grant a third party the right to operate a restaurant within the Designated Area during the term of the Franchise Agreement (excluding Non-Traditional Sites), the rights granted are non-exclusive. Crisp & Green and its affiliates retain the right to operate in various ways, including establishing restaurants at Non-Traditional Sites, selling delivery and catering services into the Designated Area, and utilizing other distribution channels like the internet. This means a Crisp & Green franchisee could face competition from the franchisor itself or other channels within their Designated Area.