factual

What happens if a Crisp & Green franchisee fails to locate an acceptable site for the premises?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

You must locate and submit for our approval a site acceptable to us within the Preliminary Designated Area for the Franchised Restaurant. We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location, although we will not conduct site selection activities for you. 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 criteria for demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.

You agree to send us a description of the proposed site, including a summary of the items listed above, along with a letter of intent or other evidence confirming your favorable prospects for purchase or lease of the proposed site. We will use reasonable efforts to approve or disapprove the proposed site within thirty (30) days after receiving your written proposal. If we do not approve of a proposed site, you must identify and notify us of new sites until we approve a site for the Franchised Restaurant. Upon our approval of a site, you agree that we will insert its address into Exhibit B, and it will be the Premises. The failure to insert such address into in Exhibit B shall not automatically affect the enforceability of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, the franchisee is responsible for selecting a site within the Preliminary Designated Area outlined in Exhibit B. Before signing any site acquisition documents, the franchisee must obtain written approval from Crisp & Green for the proposed site. Crisp & Green will offer reasonable assistance in analyzing the market area and determining site feasibility but will not conduct site selection activities for the franchisee. If the franchisee uses a broker, they are responsible for those costs. Crisp & Green will not unreasonably withhold approval of a site that meets their criteria.

The franchisee must submit a description of the proposed site, including a summary of demographic characteristics, traffic patterns, parking, neighborhood character, competition, and the site's physical characteristics, along with evidence of favorable prospects for purchase or lease. Crisp & Green will then approve or disapprove the site within 30 days of receiving the written proposal.

If Crisp & Green disapproves of a proposed site, the franchisee must continue to identify and notify Crisp & Green of new sites until an acceptable location is found. Upon approval, the site's address will be added to Exhibit B, designating it as the Premises. The document specifies that failure to add the address to Exhibit B does not affect the enforceability of the agreement. Therefore, the franchisee must continue searching for alternative locations until Crisp & Green provides written approval.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.