If a developer fails to comply with the Development Schedule, what action may Crisp & Green take?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
s Agreement and not consideration for any Franchise Agreement, is fully earned by us upon execution of this Agreement, and is nonrefundable. If you fail or choose not to develop any Franchised Restaurant that is permitted under this Agreement, you will not be entitled to any return or refund of the Development Fee or any portion thereof.
3. DEVELOPMENT SCHEDULE.
The following provisions control with respect to your development rights and obligations:
- A. You must comply with the Development Schedule requirements regarding: (i) the execution of the Franchise Agreements; (ii) the opening date for each Franchised Restaurant; and (iii) the cumulative number of Franchised Restaurants to be open and continuously operating for business in the Development Area. If you fail to either sign a Franchise Agreement or to open a Franchised Restaurant according to the dates set forth in the Development Schedule, we, in our sole discretion, may immediately terminate this Agreement under Section 5, or alter your Development Area as described in Section 1.C.
- B.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a developer must adhere to the Development Schedule, which outlines requirements for executing Franchise Agreements, opening Franchised Restaurants, and maintaining a specific number of continuously operating restaurants within the Development Area. Failure to meet these requirements can lead to specific actions by Crisp & Green.
Specifically, if a developer fails to sign a Franchise Agreement or open a Franchised Restaurant by the dates specified in the Development Schedule, Crisp & Green has the discretion to take action. Crisp & Green may immediately terminate the Area Development Agreement or alter the developer's Development Area.
In lieu of terminating the agreement, Crisp & Green may choose to replace a portion of the Development Area not yet under a fully executed Franchise Agreement. This replacement would involve territory identified when the developer demonstrates the intent and ability to execute the next Franchise Agreement as required by the Development Schedule. This clause gives Crisp & Green flexibility to adjust the development agreement based on the developer's performance and demonstrated commitment to future development.