What must a Crisp & Green franchisee deliver to the franchisor at the end of the Franchise Agreement term?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon the expiration or termination of the Franchise Agreement, Franchisor shall have the right (but not the obligation) to unilaterally accept assignment of Tenant's interest in the Lease in accordance with this Addendum.
Upon the expiration or termination of the Lease, if Franchisor does not accept assignment of Tenant's interest in the Lease, then Landlord agrees to cooperate and allow Franchisor to enter the Premises, without cost and without being liable for trespass and without incurring any liability to Landlord, to remove all signs and all other items identifying the Premises as a CRISP & GREEN restaurant and to make such other modifications as are reasonably necessary to protect the proprietary marks and franchise system of Franchisor, and to distinguish the Premises from CRISP & GREEN restaurants.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 49–50)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, Crisp & Green has the right, but not the obligation, to unilaterally accept assignment of the tenant's interest in the lease.
If Crisp & Green does not accept assignment of the tenant's interest in the lease, the landlord agrees to cooperate and allow Crisp & Green to enter the premises, without cost and without being liable for trespass and without incurring any liability to the landlord, to remove all signs and all other items identifying the premises as a Crisp & Green restaurant. The landlord will also allow Crisp & Green to make such other modifications as are reasonably necessary to protect the proprietary marks and franchise system of Crisp & Green, and to distinguish the premises from Crisp & Green restaurants.
This means that a franchisee may need to allow Crisp & Green to enter the premises to remove branding and make necessary modifications to distinguish it from a Crisp & Green restaurant, if Crisp & Green chooses not to take over the lease. This ensures the protection of Crisp & Green's brand and franchise system even after a franchise agreement ends.