What happens to the Development Area when the earliest of the expiration/termination of the agreement or the date to sign the last Franchise Agreement occurs for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything in this Agreement, when the earliest of the above events occurs: (i) the Development Area will expire; and (ii) we will be entitled to develop and operate—or to franchise others to develop and operate—CRISP & GREEN Restaurants from locations in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been signed between us and you and that has not been terminated.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the expiration of the Development Area is tied to specific events. The Development Area expires upon the earlier of (1) the expiration or termination of the Development Agreement, or (2) the date by which the franchisee is required to sign the Franchise Agreement for their last restaurant under the Development Schedule.
Upon the occurrence of either of these events, Crisp & Green has the right to develop and operate, or franchise others to develop and operate, Crisp & Green restaurants within the former Development Area. This is with the exception of locations covered by existing Franchise Agreements that are still in effect between Crisp & Green and the franchisee.
This means that a Crisp & Green franchisee's exclusive development rights within the Development Area cease under the conditions listed above. After such an event, Crisp & Green can then establish new franchises within that area, potentially in close proximity to the franchisee's existing locations, which could increase competition. It is important for prospective franchisees to understand the Development Schedule and its implications for maintaining control over their Development Area.