Where can I find information about fees other than the initial franchise fee for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 6: OTHER FEES]
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.
- (2) In the event your Franchised Restaurant is not open and operating in compliance with our standards within nine months after the effective date of your Franchise Agreement (or within the required opening date for a subsequent Franchised Restaurant if you have signed an Area Development Agreement) and we have not granted you an extension, you will be required to pay us the Minimum Royalty Fee of Seven Thousand Five Hundred Dollars ($7,500) per month plus seven percent (7%) of your Gross Sales (if any). The Minimum Royalty Fee will be charged monthly for each month until your Franchised Restaurant opens in compliance with our standards and will be pro-rated for partial months. We also have the right to terminate your Franchise Agreement if your Franchised Restaurant is not open by the required opening date.
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.
You must sign and deliver to us the documents that we periodically require to authorize us to debit your business checking account automatically for the Royalty, National Marketing Fee, and other amounts due under the Franchise Agreement or any related agreement between us (or our affiliates) and you. If we institute an automatic debit program for the Franchised Restaurant, we will debit your account for the Royalty and other amounts on or after the Payment Day, based on the Gross Sales for the previous month. You must make the funds available for withdrawal by electronic transfer before each due date. In our automatic debit program, we may require you to procure, at your expense, overdraft protection for your business checking account in an amount that we specify. You must reimburse us for any "insufficient funds" charges and related expenses that we incur for any checks that we receive from you or your failure to maintain sufficient funds in your automatic debit account.
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, details regarding fees beyond the initial franchise fee can be found in Item 6, which is titled "Other Fees."
Item 6 outlines various fees that a Crisp & Green franchisee may incur. These include a Minimum Royalty Fee of $7,500 per month plus 7% of Gross Sales if the restaurant isn't open within nine months of the Franchise Agreement's effective date. There are also potential costs related to resolving customer complaints if Crisp & Green believes the franchisee hasn't adequately addressed them. Franchisees may also face expenses for additional cure costs if they default on the Franchise Agreement, as well as damages upon termination, which vary depending on the circumstances.
Other fees include those related to securities offerings, should the franchisee propose one, and tax assessments if a sales tax or similar tax is imposed on payments made to Crisp & Green. Franchisees are also obligated to participate in the gift card and loyalty programs, with policies and procedures determined by Crisp & Green and communicated in the Operations Manual or other written communications. Furthermore, franchisees must authorize automatic debits from their business checking account for Royalty, National Marketing Fees, and other amounts due.