What is the initial franchise fee for a Crisp & Green franchise, and when is it due?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Amount (1) | Method of Payment | When Due | To Whom Payment Is to Be Made |
|---|---|---|---|---|
| Initial Franchise Fee (2) | $64,500 | Lump sum | Upon signing the Franchise Agreement | Us |
Notes:
- (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, the initial franchise fee for a single restaurant is $64,500. This fee is payable in a lump sum upon signing the Franchise Agreement. Note that this fee applies to franchisees opening a single Crisp & Green restaurant, and not those developing multiple locations under an Area Development Agreement.
For those signing an Area Development Agreement with Crisp & Green, a Development Fee is required instead of the initial franchise fee. This Development Fee is calculated by multiplying $54,900 by the number of restaurants the franchisee commits to develop. After applying to become a franchisee and the expiration of a 14-day waiting period following receipt of the disclosure document, prospective franchisees must sign a letter of intent.
As part of the application process, Crisp & Green requires a background check, including a criminal/civil record search and a credit check. The Franchise Agreement or Area Development Agreement will not be countersigned until the results of these checks are received. Crisp & Green reserves the right to reject a franchisee based on the results of these checks, highlighting the importance of meeting their suitability criteria.