What is the franchisee's obligation regarding the Development Schedule for Crisp & Green restaurants, as outlined in the Rider?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
3. DEVELOPMENT SCHEDULE.
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):
-
- 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
-
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 Crisp & Green's 2024 Franchise Disclosure Document, a franchisee with development rights must adhere to the Development Schedule outlined in the Rider. This schedule specifies requirements for (i) the execution of 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. Time is of the essence for both developing restaurants and signing franchise agreements per the schedule.
Failure to meet the Development Schedule can result in consequences. Crisp & Green has the discretion to terminate the Development Agreement or alter the Development Area if the franchisee fails to sign a Franchise Agreement or open a restaurant by the dates specified in the schedule. However, only restaurants that are actually opened and continuously operated for at least the first six months after opening will count toward the required number of restaurants.
The franchisee cannot open a Crisp & Green restaurant unless they are in compliance with all agreements, including the Development Agreement and Franchise Agreements. They must also enter into Crisp & Green's current form of Franchise Agreement and any other required agreements. The franchisee is responsible for identifying and securing sites for each restaurant, subject to Crisp & Green's approval.
If the franchisee complies with the Development Agreement and Franchise Agreements, Crisp & Green will not develop or franchise others to develop a restaurant in the Development Area until the agreement expires, terminates, or the date the franchisee must sign the Franchise Agreement for the last restaurant per the Development Schedule. However, Crisp & Green can modify the Development Area if the franchisee fails to comply with the Development Schedule, replacing portions of the area not covered by a fully executed Franchise Agreement.