Does Item 6 of the Crisp & Green FDD mention any fees related to a change in ownership?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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. |
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 outlines various "Other Fees" that a franchisee may incur. However, after reviewing the provided excerpts from Item 6, there is no mention of specific fees associated with a change in ownership of a Crisp & Green franchise. The item does detail other fees such as a minimum royalty fee of $7,500 per month under certain conditions, costs for addressing customer complaints, expenses for curing defaults, damages upon termination, securities offering costs, and tax assessments.
Item 6 does specify conditions under which certain fees are payable. For example, the minimum royalty fee is charged if the restaurant isn't open within nine months of the franchise agreement's effective date. Similarly, fees related to securities offerings or tax assessments are only applicable if the franchisee undertakes those specific actions. The item also mentions the requirement to participate in the gift card and loyalty programs.
Because the FDD excerpts do not provide information on change of ownership fees, a prospective Crisp & Green franchisee should directly ask the franchisor about any fees or requirements related to transferring ownership. This would include understanding if there are transfer fees, approval processes, or other financial obligations that must be met in the event the franchisee decides to sell the business.