Must a Crisp & Green franchisee sign Franchise Agreements for all Franchised Restaurants to be developed under the agreement as a condition of transfer?

According to the 2024 Crisp & Green Franchise Disclosure Document, a franchisee with development rights must sign a separate Franchise Agreement for each restaurant they plan to develop. Specifically, the franchisee signs a Franchise Agreement for their first restaurant concurrently with the Development Agreement. After that, a separate Franchise Agreement must be signed for each subsequent restaurant, aligning with the Development Schedule.

Crisp & Green emphasizes adherence to the Development Schedule, requiring franchisees to meet deadlines for executing Franchise Agreements and opening restaurants. Failure to comply with the schedule could lead to termination of the Development Agreement or alteration of the Development Area at Crisp & Green's discretion. However, franchisees are not required to pay an initial franchise fee for any restaurants developed under the Development Agreement, with the Development Fee serving as consideration for the agreement itself.

These Franchise Agreements exist independently of the Development Agreement, with their continued existence determined by their own terms and conditions. The establishment and operation of each Crisp & Green restaurant must align with the terms of its respective Franchise Agreement. This structure ensures each location operates under a specific, enforceable contract, while the Development Agreement sets the overall framework for expansion.