Are Crisp & Green franchisees required to purchase or lease designated equipment from approved suppliers?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
sonal required changes.
You are required to purchase from our approved suppliers certain furniture and fixtures, art and décor, restaurant and catering supplies and wares, technology and related equipment for use in back-of-house operations, site survey services, and a variety of other supplies and resources. You may use in the operation of the Franchised Restaurant only the proprietary or nonproprietary equipment and supplies that we specify and must purchase or lease all equipment that we designate from our approved suppliers. Except for marketing and promotional services and assistance described in Item 11, neither we nor our affiliates currently are approved suppliers for any products or services as of the date of this disclosure document. None of our officers hold an interest in any of our suppliers, other than us and our affiliates. We reserve the right to designate ourselves and/or any of our affiliate as an approved supplier of additional items in the future, and we may even designate ourselves or an affiliate as the sole supplier of one or more items, in which case, you would have to buy the item from us or our affiliate at our or its then-current price. Our Operations Manual and other communications will identify our standards and specifications and the names of approved or designated suppliers. If we become a designated supplier, we may charge you a reasonable mark-up, surcharge and handling fee on any items you purchase from us. Monies you pay to us will include a profit for us.
As of the date of this disclosure document, we also maintain specific suppliers as the sole source of supply for certain foods, ingredients, beverages, supplies, and other products and services; you must purchase and maintain our designated POS system hardware and software from a single supplier;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are indeed required to purchase or lease designated equipment from approved suppliers. Crisp & Green provides franchisees with a list of approved manufacturers, suppliers, and distributors, referred to as the "Approved Suppliers List," as well as a list of approved equipment, signs, stationery, supplies, and other items or services necessary to operate the franchised restaurant, known as the "Approved Supplies List."
As a Crisp & Green franchisee, you are obligated to purchase certain items from these approved suppliers, including furniture, fixtures, art, décor, restaurant and catering supplies, technology, and related equipment for back-of-house operations, site survey services, and other supplies. The equipment and supplies used in the operation must be proprietary or nonproprietary as specified by Crisp & Green, and all designated equipment must be purchased or leased from their approved suppliers.
Crisp & Green estimates that purchases and leases from approved or designated suppliers, or according to their standards, will constitute approximately 95% of the total purchases required to establish the franchised restaurant (excluding the franchise fee and other non-goods expenditures). Furthermore, these purchases will account for over 90% of the ongoing costs needed to operate the restaurant, again excluding franchise fees, royalties, and other non-goods expenditures. If a franchisee proposes to use a brand or supplier not already approved, they must notify Crisp & Green and submit the necessary information, specifications, and samples for approval, along with a $2,500 fee to cover investigation costs. Using an unapproved brand or supplier may result in a charge of up to $1,500 per day until the unauthorized use ceases.