Where in the Crisp & Green Franchise Agreement is the Designated Area defined?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Once the site for your Franchised Restaurant has been approved by us and added to the Franchise Agreement as the premises, we will define your "Designated Area" in Exhibit B to the Franchise Agreement. Your Designated Area will generally consist of a one- to three-mile radius around the site of your Franchised Restaurant (although this may be less in densely populated areas) and will be illustrated on a map. The size and shape of your Designated Area will be based on our current criteria for size, demographics, and topological features.
As long as you are in compliance with the Franchise Agreement and all other agreements between you and your affiliates, on the one hand, and us or one or more of our affiliates, on the other hand, we will not operate (directly or through an affiliate), or grant a third party the right to operate, a Restaurant within your Designated Area (other than at Non-Traditional Sites, as defined below) during the term of the Franchise Agreement. Other than as described in the immediately preceding sentence, your rights under the Franchise Agreement and Area Development Agreement are non-exclusive, meaning that our and our affiliates' activities are unrestricted. By way of example and without limitation, we and our affiliates are permitted, and we specifically reserve the right, to:
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Designated Area is defined in Exhibit B to the Franchise Agreement. Once Crisp & Green approves the site for a franchised restaurant and adds it to the Franchise Agreement as the premises, the Designated Area will be defined.
The Designated Area typically consists of a one- to three-mile radius around the restaurant's location, although it may be smaller in densely populated areas. The size and shape of the Designated Area are determined based on Crisp & Green's criteria for size, demographics, and topological features.
As long as the franchisee complies with the Franchise Agreement and other related agreements, Crisp & Green will not operate or grant a third party the right to operate another Crisp & Green Restaurant within the Designated Area during the term of the Franchise Agreement, with the exception of Non-Traditional Sites. It is important to note that the franchisee's rights are non-exclusive, allowing Crisp & Green and its affiliates to engage in unrestricted activities.
Prospective franchisees should carefully review Exhibit B of the Franchise Agreement to fully understand the specific boundaries and conditions of their Designated Area. They should also be aware of the potential for competition from Non-Traditional Sites and other channels of distribution.