If a Crisp & Green franchisee transfers their interest in the Franchise Agreement, must they transfer all Franchise Agreements for Franchised Restaurants to be developed under the agreement to the same person or entity?

According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the Development Agreement, they must transfer all Franchise Agreements for Franchised Restaurants to be developed under the agreement to the same person or entity. Crisp & Green will not charge a fee for the transfer of the Development Agreement. However, a condition of transfer approval is that the franchisee must sign Franchise Agreements for all Franchised Restaurants to be developed under the Development Agreement and transfer all of these agreements to the same entity acquiring the interest in the Development Agreement. The franchisee must also comply with all conditions for transferring each of those franchise agreements, including paying any required transfer fees for each agreement.

However, the restriction on transferring interests in the Development Agreement does not restrict the franchisee's right to transfer any interest in any Franchise Agreement previously signed for any Franchised Restaurant to be developed under the Development Agreement. The franchisee may transfer those agreements separately from any rights in the Development Agreement, provided they comply with the transfer provisions of each agreement they seek to transfer.

This means that while the Development Agreement transfer requires bundling all future restaurant agreements, previously signed franchise agreements for existing locations can be transferred independently, offering some flexibility to the franchisee. A prospective franchisee should carefully consider these transfer conditions and associated costs, as they could impact the future sale or restructuring of their Crisp & Green business.