What happens to benefits derived from transactions with suppliers for Indiana Crisp & Green franchisees?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 8, "Restrictions on Sources of Products and Services," is amended by the addition of the following language:
Any benefits derived as a result of a transaction with suppliers for Indiana franchisees will be kept by us as compensation for locating suppliers and negotiating prices for you.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, any benefits that Indiana franchisees receive as a result of transactions with suppliers will be retained by Crisp & Green. This is stated in an addendum specific to Indiana.
Crisp & Green keeps these benefits as compensation for their services in locating suppliers and negotiating prices on behalf of the franchisee. This means that while Indiana franchisees may benefit from the franchisor's negotiated prices, any additional financial incentives or rebates from suppliers go directly to Crisp & Green rather than reducing the franchisee's costs.
This arrangement could impact the overall profitability of an Indiana-based Crisp & Green franchise, as franchisees will not directly benefit from supplier incentives. Prospective franchisees in Indiana should consider this when evaluating the potential financial returns of the franchise and factor it into their business plan. It is important to understand the extent of these benefits and how they might affect the cost of goods and overall profitability.