What are the Crisp & Green franchisee's obligations regarding the personal property of the Franchised Restaurant after receiving an Appraisal Notice?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
16.04 Option to Purchase Franchised Restaurant.
- (a) Upon termination or expiration (without renewal) of this Agreement, we have the right, exercisable by giving notice thereof ("Appraisal Notice") within ten (10) days after the date of such termination or expiration, to require that a determination be made of the "Agreed Value" (as defined below) of all the personal property used in the Franchised Restaurant which you own, including inventory of non-perishable products, materials, supplies, furniture, equipment, signs, but excluding any cash and short-term investments and any items not meeting our specifications for Restaurants (the "Purchased Assets"). Upon such notice, you may not sell or remove any of the personal property of the Franchised Restaurant from the Premises and must give us, our designated agents and the "Appraiser" (as defined below) full access to the Franchised Restaurant and all of your books and records at any time during customary business hours in order to conduct inventories and determine the purchase price for the Purchased Assets.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, upon receiving an Appraisal Notice, a franchisee is obligated to refrain from selling or removing any personal property from the Franchised Restaurant premises. This includes inventory of non-perishable products, materials, supplies, furniture, equipment, and signs that the franchisee owns. However, this excludes any cash, short-term investments, and items not meeting Crisp & Green's specifications for Restaurants.
Furthermore, the franchisee must grant Crisp & Green, its designated agents, and the Appraiser full access to the Franchised Restaurant and all of the franchisee's books and records. This access is to be provided at any time during customary business hours. The purpose of this access is to allow for the conduction of inventories and the determination of the purchase price for the Purchased Assets.
These obligations are triggered when Crisp & Green exercises its right to purchase the franchisee's personal property upon termination or expiration of the Franchise Agreement. The Appraisal Notice serves as the formal notification of Crisp & Green's intent to assess and potentially acquire these assets. This ensures that Crisp & Green can maintain brand consistency and operational standards even after a franchise agreement ends.