Does the Crisp & Green Franchise Agreement prevent the franchisor from operating or franchising restaurants outside of the Designated Area?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- Establish and operate, or authorize others to establish and operate, Restaurants physically located outside of your Designated Area and Development Area on any terms and conditions we deem appropriate;
- Sell delivery and catering services, and authorize others to sell delivery and catering services, into your Designated Area and Development Area, on any terms and conditions we deem appropriate;
- Use other channels of distribution, such as the internet, grocery stores, convenience stores, kiosks, telemarketing, newspapers, or other direct marketing sales channels, to sell products and services to customers located in any place (inside or outside your Designated Area or
Development Area) using the Marks and other trademarks and service marks associated with Restaurants, or using any other trademarks, servicemarks, and other source identifiers, and authorize any other person to do any of the foregoing;
- Own and operate businesses that offer salads, grain bowls, smoothies and other healthy items, and/or related services and products that we purchase (or as to which we purchase the rights as franchisor) that are part of another franchise system or chain, and either continue to operate them independently, or convert them to businesses or franchises under the Marks, even if they are located within your Designated Area or Development Area;
- Establish and operate, or grant others the right to operate, other restaurants not identified with the CRISP & GREEN Marks (even those that offer products or services that may compete with the products or services sold in your Franchised Restaurant) in any location, including within your Designated Area or Development Area;
- Acquire the assets or ownership interests in one or more businesses and convert such businesses into Restaurants wherever they are located, including within your Designated Area or Development Area;
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Franchise Agreement does not prevent the franchisor from operating or franchising restaurants outside of a franchisee's Designated Area. Crisp & Green retains the right to establish and operate, or authorize others to do so, restaurants physically located outside of a franchisee's Designated Area and Development Area on any terms and conditions it deems appropriate. This means that Crisp & Green can expand its franchise network without being restricted by the boundaries of existing franchisees' territories.
This flexibility extends to various channels of distribution. Crisp & Green can sell delivery and catering services, and authorize others to do the same, within a franchisee's Designated Area and Development Area. They can also use channels like the internet, grocery stores, and direct marketing to sell products and services to customers regardless of location, using Crisp & Green's trademarks or other identifiers. This broad reservation of rights allows Crisp & Green to pursue diverse market opportunities without being limited by territorial agreements.
Furthermore, Crisp & Green can own and operate businesses offering similar products, such as salads and smoothies, even within a franchisee's Designated Area, either independently or under different franchise systems. They can also establish or franchise other restaurants not identified with the Crisp & Green brand, even if they compete with the franchisee's restaurant. This also includes acquiring existing businesses and converting them into Crisp & Green restaurants, irrespective of their location relative to existing franchisees. These provisions highlight that a Crisp & Green franchise does not grant an exclusive territory, and franchisees may face competition from various sources, including the franchisor itself.