Does the Crisp & Green Franchise Agreement require me to disclose any competitive business interests?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Yes, according to Crisp & Green's 2024 Franchise Disclosure Document, as a prospective franchisee, you and your principal owners must disclose any existing competitive business interests as part of the franchise application process. Specifically, you must accurately disclose any direct or indirect legal or beneficial interest in any business that could be deemed a Competitive Business. This disclosure is a representation and warranty to Crisp & Green.
A "Competitive Business" is defined as any business that (1) operates as a restaurant or similar food-service provider and derives more than 20% of its revenue from selling salads and grain bowls in a fast-food, quick-service, drive-thru or drive-in format, or (2) grants franchises or licenses to others to operate the type of business specified in the preceding subparagraph (other than a CRISP & GREEN-branded restaurant operated under a franchise agreement with Franchisor).
However, the agreement does allow for a limited exception: owning less than 5% of a publicly traded Competitive Business for investment purposes is permitted, provided that neither the individual nor the franchisee controls the company. This disclosure ensures that Crisp & Green is aware of any potential conflicts of interest and that the franchisee is committed to the success of the Crisp & Green franchise.