factual

Does Item 6 of the Crisp & Green FDD include fees for audits or inspections?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

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Type of Fee (1) Amount Due Date Remarks
believe that you have failed adequately to address or resolve any customer complaints, we may, without your consent, resolve any complaints to our satisfaction and charge you an amount sufficient to cover our reasonable costs and expenses in resolving the customer complaint.
Additional Cure Our cost and expense if we take any action to cure any default by you under the Franchise Agreement, including costs of collection for unpaid amounts Upon demand Due only if you are in default under your Franchise Agreement, in which case you must reimburse us for the additional expenses we incur (including reasonable attorneys' fees) as a result of your default and to enforce and terminate your Franchise Agreement if necessary.
Expenses and
Collection Costs
Damages upon Will vary under the circumstances 15 days after termination See Note 3.
Termination
Securities Offering Our actual expenses Upon demand Payable only if you propose to engage in a public or private securities offering, to reimburse us for our reasonable costs and expenses (including legal and accounting fees) to evaluate your proposed offering.
Tax Assessment Our actual expenses Upon demand Payable only if there is a sales tax, gross receipts tax, or similar tax or assessment (other than income tax) imposed against us with respect to any payments you make to us under the Franchise Agreement.

Notes:

  • (1) All fees are imposed by and payable to Crisp & Green Franchising LLC unless otherwise specifically noted. All fees are imposed uniformly and are non-refundable.

Source: Item 6 — OTHER FEES (FDD pages 15–22)

What This Means (2024 FDD)

According to the 2024 Crisp & Green Franchise Disclosure Document, Item 6 details various "Other Fees" that a franchisee may incur. While the table in Item 6 outlines several potential fees, it does not specifically list fees for audits or inspections. However, under the "Additional Cure Expenses and Collection Costs" section, it states that the franchisee is responsible for reimbursing Crisp & Green for costs and expenses if they take action to cure any default by the franchisee under the Franchise Agreement. This could potentially include expenses related to inspections if the franchisee is in default.

Additionally, the table includes a "Tax Assessment" fee, where the franchisee is responsible for reimbursing Crisp & Green for actual expenses if a sales tax, gross receipts tax, or similar tax assessment (other than income tax) is imposed against Crisp & Green with respect to any payments the franchisee makes to them under the Franchise Agreement. This fee is payable upon demand.

It is important for a prospective Crisp & Green franchisee to clarify with the franchisor under what specific circumstances they might be subject to these 'Additional Cure Expenses' or other fees, and whether these could include costs associated with audits or inspections. Understanding the conditions that trigger these fees is crucial for managing the financial obligations of the franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.