What happens if a Crisp & Green franchisee fails to provide notice of their desire not to renew?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- NON-RENEWAL AND TERMINATION. The following paragraph is added to the end of Sections 14.01 and 15.01:
Section 6-50-4 of the Rhode Island Fair Dealership Law includes the requirement that, in certain circumstances, a franchisee receive 90 days' notice of termination, cancellation, non-renewal or substantial change in competitive circumstances. The notice shall state all the reasons for termination, cancellation, non-renewal or substantial change in competitive circumstances and shall provide that the franchisee has 60 days in which to rectify any claimed deficiency and shall supersede the requirements of the Franchise Agreement to the extent they may be inconsistent with the Law's requirements. If the deficiency is rectified within 60 days the notice shall be void. The above-notice provisions shall not apply if the reason for termination, cancellation or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy. If the reason for termination, cancellation, nonrenewal or substantial change in competitive circumstances is nonpayment of sums due under the Franchise Agreement, Franchisee shall be entitled to written notice of such default, and shall have 10 days in which to remedy such default from the date of delivery or posting of such notice.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
The 2024 Crisp & Green Franchise Disclosure Document includes addenda for several states that address non-renewal and termination circumstances. Specifically, for franchisees operating in Rhode Island and Wisconsin, the addenda stipulate that Section 6-50-4 of the Rhode Island Fair Dealership Law and Section 135.04 of the Wisconsin Fair Dealership Law require that, in certain situations, Crisp & Green must provide the franchisee with 90 days' notice of termination, cancellation, non-renewal, or substantial changes in competitive circumstances. This notice must detail the reasons for such actions and allow the franchisee 60 days to rectify any claimed deficiency. If the franchisee fixes the issue within this 60-day period, the notice becomes void.
However, these notice provisions do not apply if the termination, cancellation, or non-renewal is due to insolvency, assignment for the benefit of creditors, or bankruptcy. Additionally, if the reason for these actions is non-payment of sums due under the Franchise Agreement, the franchisee is entitled to written notice of the default and has 10 days to remedy the default from the date the notice is delivered or posted.
For prospective Crisp & Green franchisees, especially those in Rhode Island and Wisconsin, it's crucial to understand these state-specific regulations regarding non-renewal and termination. Failing to meet the obligations outlined in the franchise agreement, such as timely payments, could lead to termination with a shorter notice period. Conversely, franchisees in these states have certain protections, such as the right to rectify deficiencies if given proper notice, except in cases of insolvency or bankruptcy.