Does the Crisp & Green FDD Item 6 specify any fees related to training or support?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 6: OTHER FEES]
You will be required to participate in our gift card program, pursuant to which CRISP & GREEN® gift cards may be purchased and redeemed at any CRISP & GREEN® Restaurant. Accordingly, you will be required to sell CRISP & GREEN® gift cards at your Franchised Restaurant and to honor the redeemption of CRISP & GREEN® gift cards at your Franchised Restaurant irrespective of where the redeemed CRISP & GREEN® gift cards were purchased. We determine the policies and procedures relating to payments and reimbursements associated with our gift card program, and communicate such policies and procedures to you in the Operations Manual or in other written bulletins or communications. You will also be required to participate in our loyalty program pursuant to policies and procedures we determine and communicate to you in the Operations Manual or in other written bulletins or communications.
Corporate Restaurants are not required to pay Technology Fees but currently do pay Royalty Fees and the National Marketing Fee on the same basis as franchised Restaurants. Corporate Restaurants do not have a specific local advertising requirement, however they will make expenditures in local advertising programs as appropriate.
(3) If your default under the Franchise Agreement results in termination of the Franchise Agreement, in addition to any other remedies available to us, you must pay us within 15 days after the effective date of termination actual damages in an amount equal to the average monthly fees paid or owed to us over the preceding 12 months (provided that if the Franchised Restaurant was not open during this entire 12-month period, we may use the Minimum Royalty Fee during such time period) multiplied by (a) 36 (being the number of months in three full years), or (b) the number of months
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Item 6 outlines various "Other Fees" payable by franchisees; however, it does not explicitly list any fees directly related to training or ongoing support. The item primarily focuses on fees associated with gift card programs, loyalty programs, minimum royalty fees, and consequences of defaulting on the franchise agreement.
Item 6 does mention that Corporate Restaurants do not pay Technology Fees. It also mentions fees related to defaults, damages upon termination, securities offerings, and tax assessments. These fees are payable under specific circumstances, such as failure to open the restaurant on time, termination of the franchise agreement due to default, or involvement in a securities offering.
While Item 6 details several financial obligations, prospective Crisp & Green franchisees should consult other sections of the FDD, specifically Item 5, to understand the initial training fees and Item 7 for a comprehensive breakdown of all ongoing fees for support, technology, or other services. It is important to clarify with Crisp & Green what specific training and support is provided and whether there are any associated costs beyond the initial franchise fee.