If a Crisp & Green franchised restaurant is located in Minnesota, does the Illinois addendum apply?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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NOTE: IF THE FRANCHISEE IS AN ENTITY, AN OFFICER AND EACH PRINCIPAL OWNER MUST EXECUTE THIS FRANCHISEE ACKNOWLEDGMENT.
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ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS
This Addendum pertains to franchises sold in the State of Illinois and is for the purpose of complying with Illinois statutes and regulations. This Addendum shall be of no force and effect unless the jurisdictional requirements of the Illinois Franchise laws and any regulations thereunder are met independently without reference to this Addendum.
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Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the applicability of the Illinois addendum depends on specific conditions. The "ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS" states that it "pertains to franchises sold in the State of Illinois and is for the purpose of complying with Illinois statutes and regulations." Additionally, the "ADDENDUM TO THE CRISP & GREEN AREA DEVELOPMENT AGREEMENT FOR THE STATE OF ILLINOIS" specifies that it is applicable "if the developer is domiciled in Illinois or if the offer of the franchise is made or accepted in Illinois and the franchise business is or will be located in Illinois."
Based on these statements, the Illinois addendum would generally not apply to a Crisp & Green franchise located in Minnesota unless the franchisee is domiciled in Illinois or the franchise offer was made or accepted in Illinois. The primary purpose of the addendum is to ensure compliance with Illinois franchise laws and regulations, which typically govern franchise relationships within the state or involving Illinois residents.
However, there is an exception. The "ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS" states that "This Addendum is being executed because the Franchised Restaurant to be operated by Franchisee pursuant to the Agreement will be located in the State of Minnesota and/or because Franchisee is a resident of the State of Minnesota." This statement suggests that in some cases, the Illinois addendum may be attached to a franchise agreement for a restaurant located in Minnesota or for a franchisee residing in Minnesota.
Therefore, while the Illinois addendum is generally for franchises in Illinois, it could apply to a Minnesota franchise under specific circumstances, such as if the franchisee is an Illinois resident or if explicitly stated in the franchise agreement. A prospective franchisee should clarify with Crisp & Green under what specific conditions the Illinois addendum would be attached to a franchise agreement for a restaurant located in Minnesota.