Can a Crisp & Green franchisee make agreements in the franchisor's name?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW THEREFORE, in consideration of the promises hereinafter contained, the sufficiency of which is hereby acknowledged by the parties hereto, Landlord and Tenant agree as follows notwithstanding anything contained in the Lease to the contrary:
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- Remodeling and Décor. Landlord agrees to allow Tenant to remodel, equip, paint and decorate the interior of the Premises and to display proprietary marks and signs on the interior and exterior of the Premises pursuant to the Franchise Agreement.
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- Restrictive Covenants. Landlord represents and warrants that (i) the use of the Premises for the operation of a CRISP & GREEN Restaurant as contemplated by the Franchise Agreement is in compliance with, and does not violate, any restriction or covenant regarding use of the Premises, and (ii) no other party has any contractual right inconsistent with the use of the Premises for the operation of a CRISP & GREEN Restaurant.
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- Assignment. Tenant has the right to assign all of its right, title and interest in the Lease to Franchisor, or its affiliates, at any time during the term of the Lease, including any extensions or renewals, without first obtaining Landlord's consent to such assignment; provided, however, no assignment of the Lease will be effective until Franchisor or its designated affiliate gives Landlord written notice of its acceptance of such assignment. If Franchisor, or its affiliate, elects to accept assignment of the Lease under this paragraph or unilaterally accepts assignment of the Lease as provided for in this Addendum, then Landlord and Tenant agree that (i) Tenant will remain liable for the responsibilities and obligations under the Lease, including without limitation,
amounts owed to Landlord, prior to the date of such assignment, and (ii) Franchisor, or its affiliate, will have the right to thereafter assign the Lease or sublease the Premises to a franchisee of Franchisor without the prior consent or approval of Landlord; provided, however, such franchisee shall agree to operate the Premises pursuant to a franchise agreement with Franchisor. Franchisor, or its affiliate, shall only be responsible for obligations under the Lease arising or incurred during such time that Franchisor, or such affiliate, is the tenant under the Lease.
Default and Notice.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Based on the 2024 Crisp & Green Franchise Disclosure Document, the excerpts provided do not contain information that explicitly states whether a franchisee can make agreements in the franchisor's name. However, there is an instance where the landlord and tenant (franchisee) agree that the tenant has the right to assign all of its right, title, and interest in the lease to Crisp & Green, or its affiliates.
The lease agreement outlines specific conditions under which Crisp & Green, as the franchisor, can become involved in lease assignments and modifications to protect its brand and system. For example, the landlord agrees to allow the tenant to remodel, equip, paint, and decorate the interior of the premises and to display proprietary marks and signs on the interior and exterior of the Premises pursuant to the Franchise Agreement. Also, in the event of a default by the tenant, the landlord is required to provide written notice to Crisp & Green, giving Crisp & Green the option to cure the default.
To fully understand the franchisee's authority regarding agreements, a prospective Crisp & Green franchisee should seek clarification from the franchisor about the specific terms and conditions outlined in the franchise agreement related to entering into agreements on behalf of the franchisor. Specifically, it would be prudent to ask Crisp & Green about what specific authorities a franchisee has to act on behalf of the franchisor and what types of agreements a franchisee can enter into.