What is a Crisp & Green franchisee required to do before establishing Restaurants within the Development Area?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
for each Franchised Restaurant; and (iii) the cumulative number of Franchised Restaurants to be open and continuously operating for business in the Development Area. If you fail to either sign a Franchise Agreement or to open a Franchised Restaurant according to the dates set forth in the Development Schedule, we, in our sole discretion, may immediately terminate this Agreement under Section 5, or alter your Development Area as described in Section 1.C.
- B. You may not open a Franchised Restaurant under this Agreement unless you meet each of the following conditions (these conditions apply to each Franchised Restaurant to be developed in the Development Area):
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- You must not be in default of this Agreement, any Franchise Agreement entered into under this Agreement, or any other agreement between you or any of your Affiliates and us or any of our Affiliates. You also must have satisfied on a timely basis all monetary
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and material obligations under the Franchise Agreements for all existing Franchised Restaurants.
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- You and we have entered into our then-current form of Franchise Agreement and such other agreements that we require for the grant of CRISP & GREEN franchises for the proposed Franchised Restaurant. You understand that we may modify the then-current form of Franchise Agreement from time to time and that it may be different than the current form of Franchise Agreement, including different fees and obligations; provided, however, that you will not be required to pay any initial franchise fee under any of those agreements. You understand and agree that any and all Franchise Agreements will be construed and exist independently of this Agreement. The continued existence of each Franchise Agreement will be determined by the terms and conditions of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, a franchisee must meet several conditions before opening a franchised restaurant within their development area. These conditions apply to each restaurant to be developed.
First, the franchisee must not be in default of the Development Agreement, any Franchise Agreement entered into under the Development Agreement, or any other agreement with Crisp & Green or its affiliates. They must also have satisfied all monetary and material obligations under the Franchise Agreements for all existing franchised restaurants on a timely basis. Second, the franchisee and Crisp & Green must enter into the then-current form of Franchise Agreement and any other agreements that Crisp & Green requires for granting franchises for the proposed restaurant. The franchisee acknowledges that the Franchise Agreement may change over time, potentially including different fees and obligations, although no initial franchise fee will be required under these agreements.
Additionally, the franchisee is solely responsible for identifying, submitting for approval, and securing specific sites for each franchised restaurant. The establishment and operation of each franchised restaurant must align with the terms of the applicable Franchise Agreement, which exists independently of the Development Agreement. Meeting these conditions is essential for a Crisp & Green franchisee to successfully develop and operate multiple restaurant locations within their designated area.