What happens after Crisp & Green approves the site for my Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Site Selection
You must operate the Franchised Restaurant at a location that meets our site selection requirements and that we have approved. If we have approved a site for your Franchised Restaurant at the time you
execute the Franchise Agreement, we will specify the site as the premises for your Franchised Restaurant in the Franchise Agreement at the time you sign the Franchise Agreement. In all other cases, the Franchise Agreement will describe a preliminary designated area and you will be responsible for identifying a site within the preliminary designated area that meets our approval. Upon our approval of the site, we will designate the site as the premises for your Franchised Restaurant in the Franchise Agreement. If you utilize a broker to identify a location, you will be responsible for any costs associated therewith. We will not unreasonably withhold our approval of a site that meets our then-current criteria for demographic characteristics; traffic patterns; parking; character of the neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.
We must approve of the lease, sublease, or purchase contract (which we refer to as the site acquisition document) for the premises of your Franchised Restaurant before you sign such document. If you lease the premises, the lease must contain the terms and provisions that are reasonably acceptable to us, and you and the landlord must execute the standard form of lease addendum (attached as Exhibit C to the Franchise Agreement). Within 10 days after our approval of the site acquisition document, you must send us the fully signed site acquisition document, together with the signed lease addendum, if applicable, for the premises. You may not relocate the Franchised Restaurant without our prior approval.
You are responsible for developing the Franchised Restaurant at your expense. It is your responsibility to prepare all required construction and remodeling plans and specifications to suit the Restaurant and to make sure that they comply with federal, state, or local laws and regulations, including the Americans with Disabilities Act (the "ADA") and similar rules governing public accommodations for persons with disabilities, other applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. You must submit all site surveys, construction and remodeling plans, and specifications to us for our approval before beginning build-out for the Franchised Restaurant and all revised or "as built" plans and specifications during construction and development. You must obtain a site survey from one of our approved vendors. We have a required architectural vendor who you must use for the creation of the architectural plans for your Franchised Restaurant.
You must open the Franchised Restaurant in compliance with our standards within nine months after the date of your Franchise Agreement. If you have signed an Area Development Agreement, you must open your first Franchised Restaurant in compliance with our standards within nine months after the date of your first Franchise Agreement and each of your subsequent Franchised Restaurants in compliance with our standards according to the opening deadlines set forth in the Area Development Agreement you will sign at the same time you sign your first Franchise Agreement.
Your obligation to complete construction of the Franchised Restaurant includes obtaining all required construction and occupancy licenses and permits, developing the premises (including all outdoor features and landscaping of the premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things required by the Franchise Agreement or by practical necessity to have the Franchised Restaurant ready to open for business by the required opening date. You must give us at least 30 days' prior notice of the date on which you plan to open the Franchised Restaurant. You may not open the Franchised Restaurant for business until we have notified you that the Franchised Restaurant meets our requirements for opening, including payment in full of the initial franchise fee and all other amounts then owing to us, successful completion of Crisp Academy, and our receipt of your certificates of insurance.
We may, but are not obligated to, grant you extensions of any opening deadlines if we determine, in our sole discretion, that you are expending good faith best efforts to complete site development and the opening process and pay a fee for the extension of up to $5,000.
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, once a site is approved, it will be designated as the premises for your Franchised Restaurant within the Franchise Agreement. If the site was pre-approved when you signed the agreement, it will be specified in the agreement itself. Otherwise, the agreement will outline a preliminary area where you're responsible for finding a suitable site for Crisp & Green's approval. You are responsible for any costs associated with using a broker to identify a location.
After site approval, you are responsible for developing the Franchised Restaurant at your own expense. This includes preparing all construction and remodeling plans and specifications to comply with laws, regulations, and lease requirements. You must submit these plans to Crisp & Green for approval before starting any build-out. Crisp & Green requires you to use their approved architectural vendor for creating these plans and to obtain a site survey from one of their approved vendors.
You must open the Franchised Restaurant within nine months of signing the Franchise Agreement, adhering to Crisp & Green's standards. This involves obtaining all necessary construction and occupancy licenses and permits, developing the premises, installing fixtures, and ensuring the restaurant is ready to open. You must provide Crisp & Green with at least 30 days' notice of your planned opening date and cannot open until they confirm that the restaurant meets their requirements, including full payment of fees, completion of Crisp Academy, and receipt of your insurance certificates.
If you fail to open on time, Crisp & Green may grant extensions, potentially with a fee of up to $5,000. However, without an extension, you may be required to pay a Minimum Royalty Fee of $7,500 plus 7% of your Gross Sales each month until the restaurant opens. Crisp & Green also reserves the right to terminate the Franchise Agreement if the restaurant does not open by the required date, unless an extension has been approved. This highlights the importance of adhering to the timeline and standards set by Crisp & Green to avoid penalties or termination.