If signing an Area Development Agreement with Crisp & Green, how is the Development Fee calculated?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
l investment.
- (2) The initial franchise fee for a single Franchised Restaurant (i.e., not in connection with an Area Development Agreement) is $64,500. If you sign an Area Development Agreement, you will pay a Development Fee equal to $54,900 multiplied by the number of Franchised Restaurants you agree to develop. You then will not pay an initial franchise fee for each Franchised Restaurant you develop under the Area Development Agreement. After you apply to become a franchisee (for a single Restaurant or for multiple Restaurants under an Area Development Agreement) and after the expiration of the 14-day waiting period following your receipt of this disclosure document, you will be required to sign a letter of intent (the "LOI") to evidence your intention to continue towards execution of one or more Franchise Agreements with us. In connection with the LOI you will be required to submit to a background check which includes a criminal/civil record search and a credit
check. We will not countersign a Franchise Agreement or Area Development Agreement until we have received results of the search and check. If we determine that you are unsuitable to run a franchised Restaurant as a result of background check and credit check results, we reserve the right to not accept you as a franchisee and to terminate any agreements between us and you. An example of the LOI for a single territory is attached as Exhibit D to this disclosure document.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–26)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if you enter into an Area Development Agreement, the development fee is calculated by multiplying $54,900 by the number of Crisp & Green restaurants you commit to develop. This fee structure replaces the standard initial franchise fee for each individual restaurant developed under the agreement. The initial franchise fee for a single Crisp & Green restaurant, outside of an Area Development Agreement, is $64,500.
After applying to become a franchisee, whether for a single restaurant or multiple restaurants under an Area Development Agreement, and after the 14-day waiting period following receipt of the disclosure document, you must sign a letter of intent. As part of this process, you will undergo a background check, including a criminal/civil record search and a credit check. Crisp & Green will not finalize any Franchise Agreement or Area Development Agreement until the results of these checks are received and deemed satisfactory.
If the background and credit checks reveal information that Crisp & Green considers unsuitable for running a franchised restaurant, they reserve the right to reject the applicant and terminate any existing agreements. An example of the letter of intent for a single territory is included as Exhibit D to the disclosure document. This process ensures that all franchisees meet Crisp & Green's standards before being granted the rights to develop restaurants under their brand.