What is the initial franchise fee for Crisp & Green that is used to calculate the transfer fee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
If this Agreement is executed pursuant to an Area Development Agreement, the initial franchise fee is subject to the provisions of the Area Development Agreement. Notwithstanding the foregoing, if this Agreement is executed in connection with your independent purchase of (or other receipt of transferred ownership interests in) the Franchised Restaurant's assets from a third party owner, then you will not pay us an initial franchise fee, but we must have received (on or before the Effective Date) the full amount of any associated transfer fee that was due to us in connection with that transaction. The initial franchise fee (and asset transfer fee, if applicable) is fully earned by us as of the Effective Date and is non-refundable.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, if a franchisee independently purchases a Franchised Restaurant's assets from a third-party owner, they will not be required to pay the initial franchise fee. However, Crisp & Green must receive the full amount of any associated transfer fee that was due in connection with that transaction on or before the effective date. The FDD does not specify the amount of the initial franchise fee that is used to calculate the transfer fee.