If a Crisp & Green franchisee fails to maintain the restaurant, what rights does the franchisor have?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
gistered or certified mail, postage prepaid, to Crisp & Green Franchising LLC, 746 Mill Street E, Wayzata, Minnesota 55391. Franchisor may change its address for receiving notices by giving Landlord written notice of the new address. Landlord agrees to notify both Tenant and Franchisor of any change in Landlord's mailing address to which notices should be sent. Upon Tenant's default and failure to cure a default under either the Lease or the Franchise Agreement, Franchisor has the right (but not the obligation) to unilaterally accept assignment of Tenant's interest in the Lease in accordance with this Addendum.
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- Termination or Expiration. Upon the expiration or termination of the Franchise Agreement, Franchisor shall have the right (but not the obligation) to unilaterally accept assignment of Tenant's interest in the Lease in accordance with this Addendum. 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.
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- Consideration; No Liability.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee defaults under the lease or franchise agreement, Crisp & Green has the right, but not the obligation, to unilaterally accept assignment of the franchisee's interest in the lease. Additionally, if the franchisee fails to comply with the agreement regarding catering or delivery services, Crisp & Green has the right to temporarily suspend or permanently terminate the franchisee's right to provide these services, or restrict the geographic area where they can be offered.
Furthermore, in the event of a default or violation by the tenant (franchisee) under the terms of the lease, the landlord is required to provide Crisp & Green with written notice of such default or violation on the same day the notice is provided to the franchisee. Crisp & Green then has the right, but not the obligation, to cure the default or violation. Specifically, Crisp & Green has an additional fifteen days after the expiration of the franchisee's cure period to address the default or violation.
Upon expiration or termination of the franchise agreement, Crisp & Green has the right, but not the obligation, to unilaterally accept assignment of the franchisee's interest in the lease. If Crisp & Green does not accept assignment of the lease upon its expiration or termination, the landlord agrees to allow Crisp & Green to enter the premises to remove signs and other items identifying it as a Crisp & Green restaurant, and to make modifications necessary to protect Crisp & Green's proprietary marks and franchise system.