What is included in the Crisp & Green background check?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
initial 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
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–26)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the background check includes a criminal/civil record search and a credit check. This background check is initiated after you submit a letter of intent to continue towards executing a Franchise Agreement or Area Development Agreement.
Crisp & Green requires this background check to assess your suitability as a franchisee. The franchisor will not finalize any Franchise Agreements or Area Development Agreements until the results of the background check are received and reviewed.
If the results of the background check and credit check are unfavorable, Crisp & Green reserves the right to reject your application and terminate any existing agreements. This means that a prospective franchisee's past legal and financial history will be scrutinized to determine if they meet the brand's standards for operating a franchise.
Prospective franchisees should be aware of this requirement and ensure they understand the implications of any negative findings in their background check. It is advisable to address any potential issues proactively before submitting the letter of intent to avoid potential complications in the franchise approval process.