factual

Does the Crisp & Green franchise agreement create a fiduciary relationship between the franchisor and franchisee?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

Neither this Agreement nor the dealings of the parties pursuant to this Agreement shall create any fiduciary relationship or any other relationship of trust or confidence between the parties hereto. Franchisor and Franchisee, as between themselves, are and shall be independent contractors.

We and you acknowledge and agree that this Agreement (and the relationship of the parties which arises from this Agreement) grants us the right to make decisions, take actions and/or refrain from taking actions not inconsistent with your explicit rights and obligations hereunder that may affect favorably or adversely your interests. You understand and agree that we may operate and change the System and our business in any manner that is not expressly and specifically prohibited by this Agreement. Whenever we have reserved in this Agreement a right and/or discretion to take or withhold an action, or to grant or decline to grant you a right to take or withhold an action, except as otherwise expressly and specifically provided in this Agreement, we may make our decision or exercise our right and/or discretion on the basis of our judgment of what is in our best interests, including our judgment of what is in the best interests of our franchise network, at the time our decision is made, without regard to: (a) whether other reasonable or even arguably preferable alternative decisions or actions could have been made by us; (b) whether our decision or the action we take promotes our financial or other individual interest; (c) whether our decision or the action we take applies differently to you and one (1) or more other franchisees; or (d)

whether our decision or the exercise of our rights is adverse to your individual interests or the individual interests of any other particular franchisees. We will have no liability to you for any such decision or exercise of our rights.

Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Franchised Restaurant and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require at any time and from time to time.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to the 2024 Crisp & Green Franchise Disclosure Document, the franchise agreement explicitly states that it does not create a fiduciary relationship between the franchisor and franchisee. The agreement specifies that Crisp & Green and its franchisees are independent contractors, acting as separate entities. This means that neither party owes the other the heightened duties of care and loyalty that characterize a fiduciary relationship.

Crisp & Green retains the right to make decisions and take actions that may affect a franchisee's interests, provided these actions are not inconsistent with the franchisee's explicit rights and obligations under the agreement. This includes the ability to modify the Crisp & Green system and business operations, even if such changes may have adverse effects on individual franchisees. The franchisor's decisions are to be based on their judgment of what is in the best interests of the franchise network as a whole.

This clause also clarifies that neither party is considered an agent, joint venturer, partner, or employee of the other. Franchisees are required to identify themselves as independent owners of their Crisp & Green restaurants in all dealings with customers, suppliers, and other parties. This reinforces the independent contractor status and lack of fiduciary duty, which is a fairly standard arrangement in the franchise industry.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.