What is the Crisp & Green franchisee's obligation regarding the development and operation of the franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
The following provisions control with respect to your development rights and obligations:
- A. You must comply with the Development Schedule requirements regarding: (i) the execution of the Franchise Agreements; (ii) the opening date 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.
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.
Except as specifically set forth in this Agreement, the establishment and operation of each Franchised Restaurant must be in accordance with the terms of the applicable Franchise Agreement.
You will be solely responsible for identifying, submitting for our approval, and securing specific sites for each Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, franchisees who enter into an Area Development Agreement are granted the right to develop and operate a specified number of Crisp & Green restaurants within a defined territory, known as the Development Area. This right is contingent upon adhering to the terms and conditions outlined in the Area Development Agreement. The franchisee must also follow a Development Schedule, which dictates the timeline for signing Franchise Agreements and opening restaurants.
Time is of the essence, and each Crisp & Green restaurant must be developed and operated under a separate Franchise Agreement. The franchisee is responsible for identifying and securing suitable sites for each restaurant, subject to the franchisor's approval. Failure to meet the Development Schedule, either by not signing a Franchise Agreement or not opening a restaurant on time, may result in the franchisor terminating the Area Development Agreement or altering the Development Area.
Crisp & Green requires that franchisees must not be in default of any agreements with the franchisor or its affiliates and must fulfill all monetary and material obligations. The establishment and operation of each franchised restaurant must align with the terms of the individual Franchise Agreement. However, Crisp & Green retains rights to operate or franchise other restaurants, including those using the same or similar systems and marks, outside the Development Area, potentially creating competition for the franchisee.