Does the Crisp & Green franchise agreement define 'Immediate Family' in the context of prohibited competitive activities?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit F.
- 1.03 Your Representations. You and your Principal Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Principal Owners has made any untrue statement of any material fact or has omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Principal Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise completely and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or of any of your Principal Owners may be bound. You recognize that we have approved your franchise application
in reliance on all of the statements you and your Principal Owners have made in connection therewith.
1.04 Certain Definitions. The terms listed below have the meanings which follow them and include the plural as well as the singular. Other terms are defined elsewhere in this Agreement in the context in which they arise.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document excerpts, the term 'Immediate Family' is not explicitly defined within the context of prohibited competitive activities. However, the document does address competitive business activities and defines what constitutes a 'Competitive Business.'
The franchise agreement states that franchisees and their principal owners cannot have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except if completely and accurately disclosed in the franchise application. A 'Competitive Business' is defined as any business that operates as a restaurant or similar foodservice provider deriving more than 20% of its revenue from selling fresh salads and grain bowls in a fast-casual, quick-service, drive-thru, catering, or delivery format, or grants franchises/licenses to others to operate such a business (excluding Crisp & Green-branded restaurants).
While the FDD does not specifically mention 'Immediate Family,' the broad language regarding 'direct or indirect legal or beneficial interest' suggests that the competitive restrictions could extend to family members if their business activities could be attributed to or influenced by the franchisee or principal owner. A prospective franchisee should seek clarification from Crisp & Green regarding the extent to which these competitive restrictions apply to immediate family members to avoid potential conflicts of interest.