What happens if a Franchise Agreement between Crisp & Green and the developer has been signed but is later terminated?

According to Crisp & Green's 2024 Franchise Disclosure Document, if a Franchise Agreement has been signed between Crisp & Green and a developer but is later terminated, Crisp & Green is entitled to develop and operate, or franchise others to develop and operate, Crisp & Green Restaurants from locations in the Development Area. This entitlement is subject to the conditions outlined in any Franchise Agreement that has been signed but not terminated.

This means that even if a developer initially secures rights to a specific territory through a Development Agreement and subsequently signs individual Franchise Agreements for locations within that area, Crisp & Green retains the right to re-franchise or operate those locations themselves if a Franchise Agreement is terminated. This could occur for various reasons, such as the franchisee's failure to meet performance standards or a breach of contract.

For a prospective Crisp & Green franchisee, this clause highlights the importance of adhering to the terms of the Franchise Agreement. Failure to do so could result in the loss of the franchised location and the potential for Crisp & Green or another franchisee to operate in the same area. This provision protects Crisp & Green's interests by ensuring that territories remain active and productive, even if an individual franchisee is unable to fulfill their obligations. It also underscores the need for developers to carefully review and understand the conditions under which their Franchise Agreements can be terminated.