What is the Crisp & Green franchisee's responsibility regarding the cost of repairs or reconstruction to restore the Franchised Restaurant to its original condition?

According to Crisp & Green's 2024 Franchise Disclosure Document, if the Franchised Restaurant is damaged or destroyed by fire or other casualty, the franchisee is responsible for initiating and diligently continuing all repairs or reconstruction efforts to restore the restaurant to its original condition. This action must begin within thirty days of the damage.

Crisp & Green also has the option to require the franchisee to update the restaurant to the current layout and decor specifications for new restaurants if it is feasible and doesn't incur substantial additional costs. This means that while the franchisee is generally responsible for restoring the restaurant to its original condition, Crisp & Green can mandate a more modern remodel if circumstances allow.

This requirement places a significant financial burden on the franchisee, as they must bear the costs of restoring the restaurant after a major casualty. Franchisees should ensure they have adequate insurance coverage to protect against such events. Additionally, the potential for Crisp & Green to require a remodel to current specifications could further increase the financial burden, so franchisees need to understand the potential costs associated with both scenarios.