What does the franchisee agree to upon Crisp & Green's approval of a site?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
o not approve of a proposed site, you must identify and notify us of new sites until we approve a site for the Franchised Restaurant. Upon our approval of a site, you agree that we will insert its address into Exhibit B, and it will be the Premises. The failure to insert such address into in Exhibit B shall not automatically affect the enforceability of this Agreement.
3.03 Purchase or Lease of Premises. We have the right to approve the terms of any site acquisition documents for the Premises. You must deliver to us a copy of the proposed site acquisition document.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, once Crisp & Green approves a site for the Franchised Restaurant, the franchisee agrees that Crisp & Green will insert the address of the approved site into Exhibit B of the franchise agreement, thereby designating it as the Premises. The document clarifies that the failure to insert the address into Exhibit B does not automatically affect the enforceability of the agreement.
In addition, the franchisee and their Principal Owners release Crisp & Green, its affiliates, managers, officers, directors, governors, employees, and agents from any loss, damage, and liability arising from or connected with the selection or acceptance of the Premises for development as a Restaurant. This release is a significant commitment, indicating that the franchisee assumes responsibility for their own independent investigation of the site's suitability.
This agreement highlights the importance of thorough due diligence on the franchisee's part when selecting a location. While Crisp & Green may offer assistance in analyzing the market area and determining site feasibility, the ultimate decision and responsibility for the site's success rest with the franchisee. This is a common practice in franchising, where franchisees typically bear the risk associated with location selection, while franchisors provide guidance and brand standards.