If I have an Area Development Agreement with Crisp & Green, how are the opening deadlines for subsequent Franchised Restaurants determined?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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You must open the Franchised Restaurant in compliance with our standards within nine months after the date of your Franchise Agreement. If you have signed an Area Development Agreement, you must open your first Franchised Restaurant in compliance with our standards within nine months after the date of your first Franchise Agreement and each of your subsequent Franchised Restaurants in compliance with our standards according to the opening deadlines set forth in the Area Development Agreement you will sign at the same time you sign your first Franchise Agreement.
Your obligation to complete construction of the Franchised Restaurant includes obtaining all required construction and occupancy licenses and permits, developing the premises (including all outdoor features and landscaping of the premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things required by the Franchise Agreement or by practical necessity to have the Franchised Restaurant ready to open for business by the required opening date. You must give us at least 30 days' prior notice of the date on which you plan to open the Franchised Restaurant. You may not open the Franchised Restaurant for business until we have notified you that the Franchised Restaurant meets our requirements for opening, including payment in full of the initial franchise fee and all other amounts then owing to us, successful completion of Crisp Academy, and our receipt of your certificates of insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if you sign an Area Development Agreement, the opening deadline for your first Franchised Restaurant is within nine months of the Franchise Agreement date. The opening deadlines for each subsequent Crisp & Green restaurant will be determined and outlined in the Area Development Agreement, which you will sign concurrently with your initial Franchise Agreement.
If a franchisee fails to open a subsequent Crisp & Green restaurant by the date specified in the Area Development Agreement, Crisp & Green may, at its sole discretion, grant an extension, provided the franchisee is making a good faith effort to complete the site development and opening process. The franchisee may be required to pay a fee of up to $5,000 for this extension.
Should a Crisp & Green restaurant not be open within the agreed-upon timeframe (or any extension thereof), the franchisee will be required to pay a Minimum Royalty Fee of $7,500, plus 7% of gross sales (if any), for each month until the restaurant opens. Crisp & Green also retains the right to terminate the Franchise Agreement if the restaurant is not opened by the required date, assuming no extension has been granted.