What is the initial franchise fee for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
You must pay us a Development Fee in the amount set forth in the Rider. This fee is payable in full when you sign this Agreement. However, you will not be required to pay an initial franchise fee for any of the Franchised Restaurants you develop under this Agreement.
- A. You will sign the Franchise Agreement for your first Franchised Restaurant concurrently with this Agreement. A separate Franchise Agreement must be signed for each Franchised Restaurant as it is identified, which must be consistent with the Development Schedule. Upon the execution of each Franchise Agreement, the terms and conditions of the Franchise Agreement control the establishment and operation of the Franchised Restaurant.
- B. The Development Fee is consideration for this Agreement and not consideration for any Franchise Agreement, is fully earned by us upon execution of this Agreement, and is nonrefundable. If you fail or choose not to develop any Franchised Restaurant that is permitted under this Agreement, you will not be entitled to any return or refund of the Development Fee or any portion thereof.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, if you sign an Area Development Agreement, you will not be required to pay an initial franchise fee for each restaurant you develop under the agreement. Instead, you must pay a Development Fee, the amount of which is set forth in the Rider to the agreement. This fee is payable in full when you sign the Area Development Agreement.
The Development Fee is consideration for the Area Development Agreement itself, not for any individual Franchise Agreement. Crisp & Green considers the Development Fee fully earned upon execution of the Area Development Agreement and it is nonrefundable. Therefore, if you fail to develop any restaurants permitted under the Area Development Agreement, you will not receive any refund of the Development Fee.
For each restaurant developed under the Area Development Agreement, a separate Franchise Agreement must be signed, consistent with the Development Schedule. Upon the execution of each Franchise Agreement, the terms and conditions of that Franchise Agreement will govern the establishment and operation of the Franchised Restaurant.