factual

Does the Crisp & Green franchise agreement specify that a waiver with respect to other restaurants constitutes a waiver?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

D. You acknowledge and agree that other than as set forth in Section C above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by Crisp & Green Restaurants, and the operation or franchising of Crisp & Green Restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Development Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants physically located outside the Development Area, on such terms and conditions as we deem appropriate (you acknowledge that such Crisp & Green Restaurants may be in direct competition with your Franchised Restaurant(s), without regard to any adverse effects of such activities on your Franchised Restaurant(s) and without any obligation or liability to you), which includes the right of us and others to perform Catering Services or Delivery Services in your Development Area; (b) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Development Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and physical outlets like kiosks, convenience stores or supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the Crisp & Green name and mark), pursuant to such terms and conditions as we deem appropriate and wherever such restaurants are located, which restaurants may be located within the Development Area; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those

provided at Crisp & Green Restaurants, and to franchise, license or create similar arrangements with respect to these businesses once acquired, and which businesses we may (at our sole discretion, and without obligation) convert, or allow to be converted, to operations as Crisp & Green Restaurants using any of the Marks and/or the System, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in your Development Area, if applicable); and (f) to be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by a business providing products and services similar to those provided at Crisp & Green Restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses in the Development Area.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

Based on the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green retains significant rights regarding the operation and franchising of restaurants, even those that might compete with a franchisee's location. Specifically, Crisp & Green has the right to establish and operate, or grant to others the right to operate, restaurants identified by trademarks other than the Crisp & Green marks, even within a franchisee's Development Area. These restaurants may be located within the Development Area.

Additionally, Crisp & Green has the right to acquire businesses that offer similar products and services to Crisp & Green Restaurants and to franchise, license, or create similar arrangements with respect to these acquired businesses. Crisp & Green may convert these acquired businesses into Crisp & Green Restaurants, even within a franchisee's Development Area. Furthermore, Crisp & Green can be acquired by a business providing similar products and services, even if that business operates competitive businesses in the Development Area.

These provisions mean that a Crisp & Green franchisee's protected territory or development area could potentially face competition from other restaurant concepts owned, operated, or franchised by Crisp & Green or its affiliates. The franchisee acknowledges that such Crisp & Green Restaurants may be in direct competition with their Franchised Restaurant(s), without regard to any adverse effects of such activities on their Franchised Restaurant(s) and without any obligation or liability to you, which includes the right of us and others to perform Catering Services or Delivery Services in your Development Area. This could impact the franchisee's market share and profitability. A prospective franchisee should carefully consider these potential competitive scenarios and discuss them with Crisp & Green before investing.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.