factual

What items are Crisp & Green franchisees required to purchase from approved suppliers?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

sonal required changes.

You are required to purchase from our approved suppliers certain furniture and fixtures, art and décor, restaurant and catering supplies and wares, technology and related equipment for use in back-of-house operations, site survey services, and a variety of other supplies and resources. You may use in the operation of the Franchised Restaurant only the proprietary or nonproprietary equipment and supplies that we specify and must purchase or lease all equipment that we designate from our approved suppliers. Except for marketing and promotional services and assistance described in Item 11, neither we nor our affiliates currently are approved suppliers for any products or services as of the date of this disclosure document. None of our officers hold an interest in any of our suppliers, other than us and our affiliates. We reserve the right to designate ourselves and/or any of our affiliate as an approved supplier of additional items in the future, and we may even designate ourselves or an affiliate as the sole supplier of one or more items, in which case, you would have to buy the item from us or our affiliate at our or its then-current price. Our Operations Manual and other communications will identify our standards and specifications and the names of approved or designated suppliers. If we become a designated supplier, we may charge you a reasonable mark-up, surcharge and handling fee on any items you purchase from us. Monies you pay to us will include a profit for us.

As of the date of this disclosure document, we also maintain specific suppliers as the sole source of supply for certain foods, ingredients, beverages, supplies, and other products and services; you must purchase and maintain our designated POS system hardware and software from a single supplier; and you must use our designated architectural vendor for creation of the architectural plans for your Franchised Restaurant as described above. We may also require you to use a designated digital marketing vendor for digital marketing services and a designated vendor for public relations services.

Advertising

You are required to spend a certain amount of local advertising and promotion per quarter. We will have the right to review and approve all marketing plans and promotional materials that you propose to use, and you may use only marketing and promotional materials that meet our standards, are approved by us, and are produced by an approved supplier. You may not implement any marketing plan or use any promotional material without our prior written consent.

Computer System and Required Software

You are required to obtain and use the specific POS and inventory system, electronic cash register, computer, thermal printers, AC line filters, remote printer interface, internet-based communications (collectively, the "Computer System") we have approved for use at your Franchised Restaurant. All components of the Computer System must be purchased from suppliers approved by us. You must also obtain a license for the required POS system software and for a back office and inventory system, as well as certain off-the-shelf software, including Microsoft Office, accounting software and such other business operations software as we may require and complete such training on this software as we may require, at your expense.

Certifications and Licenses

You are required to obtain the required licenses and certifications as may be required by your state laws. Each of your managers and other employees we designate must be ServSafe certified or must have completed a similar safety training and certificate program approved by us, and you must bear the cost of ensuring such managers and employees have obtained such approved certifications.

Insurance

You must obtain and maintain certain types and amounts of insurance coverage from an approved supplier of insurance.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are required to purchase specific items from approved suppliers. These include furniture and fixtures, art and décor, restaurant and catering supplies and wares, technology and related equipment for back-of-house operations, and site survey services. Additionally, franchisees must acquire a designated POS system, including hardware and software, from a single approved supplier.

Crisp & Green also mandates the use of a designated architectural vendor for creating architectural plans for the restaurant. Furthermore, franchisees may be required to use designated vendors for digital marketing and public relations services. The FDD specifies that franchisees must use only proprietary or nonproprietary equipment and supplies specified by Crisp & Green and must purchase or lease all designated equipment from approved suppliers.

If a franchisee wishes to use a brand or supplier not already approved, they must seek approval from Crisp & Green by submitting the necessary information, specifications, and samples. A fee of $2,500 is required to cover the investigation costs associated with this approval process. Crisp & Green maintains the right to charge up to $1,500 per day if an unapproved brand or supplier is used without authorization. Crisp & Green estimates that purchases from approved or designated suppliers will constitute approximately 95% of the initial establishment costs and over 90% of the ongoing operational costs, excluding franchise fees and other non-goods expenditures.

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.