What happens if the lease for a Crisp & Green restaurant is cancelled?
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, if the lease is terminated or expires, Crisp & Green has the right, but not the obligation, to accept assignment of the tenant's interest in the lease. If Crisp & Green does not accept the assignment, the landlord will allow Crisp & Green to enter the premises to remove signs and other items identifying it as a Crisp & Green restaurant. They can also make modifications to protect their marks and franchise system, distinguishing the location from Crisp & Green restaurants, without cost or liability for trespass. If Crisp & Green acquires the tenant's assets, the landlord must allow them to remove those assets from the premises.
Furthermore, the landlord agrees to notify Crisp & Green in writing of any tenant default or lease violation, giving Crisp & Green the option to cure the default within fifteen days after the tenant's cure period expires. All notices to Crisp & Green must be sent by registered or certified mail to their specified address in Wayzata, Minnesota, though this address can be changed with written notice to the landlord.
These stipulations protect Crisp & Green's brand and provide options in case a franchisee's lease is terminated. The franchisor's ability to take over a lease or enter the premises to de-identify it minimizes potential damage to the brand's reputation and prevents confusion. The right to cure defaults provides an additional layer of security, allowing Crisp & Green to maintain the location if they deem it valuable. However, the franchisee remains liable for responsibilities and obligations under the lease, including amounts owed to the landlord, prior to the date of assignment.