What happens if the lease for a Crisp & Green franchised restaurant is cancelled or terminated?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon the expiration or termination of the Lease, if Franchisor does not accept assignment of Tenant's interest in the Lease, then Landlord agrees to cooperate and allow Franchisor to enter the Premises, without cost and without being liable for trespass and without incurring any liability to Landlord, to remove all signs and all other items identifying the Premises as a CRISP & GREEN restaurant and to make such other modifications as are reasonably necessary to protect the proprietary marks and franchise system of Franchisor, and to distinguish the Premises from CRISP & GREEN restaurants.
In the event Franchisor exercises its option to acquire title or any other interest in the assets of Tenant, Landlord agrees to permit Franchisor to remove all such assets from the Premises.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, in the event of a lease termination or expiration, Crisp & Green has specific rights regarding the restaurant premises. Upon the lease's expiration or termination, if Crisp & Green does not accept assignment of the tenant's interest in the lease, the landlord must allow Crisp & Green to enter the premises to remove any signs and items identifying it as a Crisp & Green restaurant. This is done without cost to Crisp & Green and without liability for trespass, ensuring the franchisor can protect its proprietary marks and distinguish the location from Crisp & Green restaurants.
This provision allows Crisp & Green to protect its brand identity and prevent consumer confusion if a franchise location closes. It ensures that the closed location does not continue to appear as an active Crisp & Green restaurant, which could negatively impact the brand's reputation. Additionally, Crisp & Green has the right to remove any assets of the tenant from the premises if it exercises its option to acquire title or any other interest in those assets.
Furthermore, the landlord agrees to notify both the tenant (franchisee) and Crisp & Green of any changes in the landlord's mailing address for notices. This ensures that all parties are informed of important communications related to the lease. In the event of a default or violation by the tenant under the lease terms, the landlord must provide written notice to Crisp & Green on the same day the notice is given to the tenant. Crisp & Green then has the right, but not the obligation, to cure the default or violation, with an additional fifteen days after the tenant's cure period to do so. This provides Crisp & Green with an opportunity to maintain the location and potentially transfer it to another franchisee or operate it themselves, mitigating potential losses and maintaining brand presence.