Does the Crisp & Green Franchise Agreement require me to conduct an independent investigation of the business?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.02 Your Acknowledgments. You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of restaurants may change over time, that an investment in a Restaurant involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance. You or your Principal Owners shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit F.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Franchise Agreement includes an acknowledgment that you have conducted an independent investigation of the business. Specifically, it states that you have read the agreement and the Franchise Disclosure Document, understand the terms, and accept them as reasonably necessary.
This acknowledgment confirms that you recognize the restaurant industry is competitive and subject to changing market conditions. It also indicates that you understand that investing in a Crisp & Green restaurant involves business risks and that your success depends on your abilities, efforts, and financial resources. Furthermore, it verifies that you have not relied on any guarantees or assurances regarding revenue, profits, or success from Crisp & Green.
While Crisp & Green requires this acknowledgment, it is standard practice in the franchise industry for franchisors to expect franchisees to conduct their own due diligence. This expectation helps ensure that franchisees are entering the agreement with a clear understanding of the risks and opportunities involved. It is important to note that, in some states like Virginia and Maryland, certain acknowledgments cannot waive claims under state franchise laws or disclaim reliance on franchisor statements.