If a Crisp & Green tenant defaults, does the landlord have to notify the franchisor?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event there is a default or violation by Tenant under the terms of the Lease, Landlord agrees to give Franchisor written notice of such default or violation on the same day Landlord provides such notice to Tenant.
Landlord agrees that Franchisor has the right, but is under no obligation, to cure the default or violation of Tenant set forth in any notice provided by Landlord.
Franchisor shall have an additional fifteen (15) days after the expiration of Tenant's cure period in which to cure the default or violation.
All notices to Franchisor must be sent by registered 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.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the landlord is required to provide written notice to Crisp & Green if the tenant (franchisee) defaults or violates the terms of the lease. This notification must occur on the same day the landlord notifies the tenant. This requirement is part of an addendum to the lease agreement between the landlord and tenant. The purpose is to ensure Crisp & Green is informed of any issues that could jeopardize the franchisee's operation and potentially impact Crisp & Green's brand and system standards.
Crisp & Green has the right, but not the obligation, to cure the default or violation. Crisp & Green is granted an additional fifteen days after the tenant's cure period to address the default. All notices to Crisp & Green must be sent via registered or certified mail to the specified address in Wayzata, Minnesota, although Crisp & Green can change this address with written notice to the landlord.
This arrangement benefits Crisp & Green by giving them a chance to protect their interests, such as by keeping the location operational or finding a new franchisee. It also protects the landlord, as Crisp & Green's involvement can potentially resolve the default and ensure continued lease payments. The franchisee benefits from the franchisor's potential intervention, which could prevent lease termination and business closure. This is a fairly common practice in franchising, as it allows the franchisor to maintain control over the brand and operational standards, even when individual franchisees face difficulties.