Does the Crisp & Green FDD Item 6 specify if any of the fees are subject to change?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| believe that you have failed adequately to address or resolve any customer complaints, we may, without your consent, resolve any complaints to our satisfaction and charge you an amount sufficient to cover our reasonable costs and expenses in resolving the customer complaint. | |||
| Additional Cure | Our cost and expense if we take any action to cure any default by you under the Franchise Agreement, including costs of collection for unpaid amounts | Upon demand | Due only if you are in default under your Franchise Agreement, in which case you must reimburse us for the additional expenses we incur (including reasonable attorneys' fees) as a result of your default and to enforce and terminate your Franchise Agreement if necessary. |
| Expenses and | |||
| Collection Costs | |||
| Damages upon | Will vary under the circumstances | 15 days after termination | See Note 3. |
| Termination | |||
| Securities Offering | Our actual expenses | Upon demand | Payable only if you propose to engage in a public or private securities offering, to reimburse us for our reasonable costs and expenses (including legal and accounting fees) to evaluate your proposed offering. |
| Tax Assessment | Our actual expenses | Upon demand | Payable only if there is a sales tax, gross receipts tax, or similar tax or assessment (other than income tax) imposed against us with respect to any payments you make to us under the Franchise Agreement. |
Notes:
- (1) All fees are imposed by and payable to Crisp & Green Franchising LLC unless otherwise specifically noted. All fees are imposed uniformly and are non-refundable.
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to the 2024 Crisp & Green FDD, Item 6 outlines various 'Other Fees' that a franchisee may incur. While the document does not explicitly state that all fees are subject to change, it does specify circumstances under which certain fees may vary or be imposed.
For instance, the 'Damages upon Termination' fee will vary based on the specific circumstances leading to the termination of the franchise agreement. Additionally, franchisees may be subject to 'Additional Cure Expenses and Collection Costs' if they default under the Franchise Agreement, with the amount being dependent on the costs incurred by Crisp & Green to rectify the default. Similarly, 'Tax Assessment' fees are contingent upon whether a sales tax, gross receipts tax, or similar tax is imposed on payments made to Crisp & Green under the Franchise Agreement, indicating that this fee is not fixed and depends on external tax regulations.
Furthermore, Crisp & Green outlines that if a franchisee proposes a securities offering, they are responsible for reimbursing Crisp & Green's actual expenses related to evaluating the offering, including legal and accounting fees. This implies that the 'Securities Offering' fee is variable and dependent on the extent of the expenses incurred by Crisp & Green. Therefore, while some fees might be fixed, others are subject to change based on specific actions, defaults, or external factors, as detailed in Item 6.