For Crisp & Green, how long must a Franchised Restaurant be continuously operated in the Development Area to be counted toward the Development Schedule?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
For purposes of determining compliance with this Development Schedule, only the Franchised Restaurants you actually open and continuously operate in the Development Area for at least the first six (6) months after opening will be counted toward the number of Franchised Restaurants required to be open and operated by you.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a Franchised Restaurant must be continuously operated in the Development Area for at least six months after opening to be counted toward the Development Schedule. This requirement is in place to ensure that only restaurants that have been successfully established and are actively operating contribute to the franchisee's fulfillment of their development obligations.
This stipulation has significant implications for Crisp & Green franchisees with development agreements. It means that simply opening a location is not sufficient to meet the development schedule; the restaurant must also sustain operations for a minimum of six months. This protects Crisp & Green by ensuring that development goals reflect viable, ongoing businesses, not just short-term openings.
For prospective Crisp & Green franchisees, this emphasizes the importance of thorough planning and execution to ensure the long-term viability of each location. Franchisees need to consider factors such as site selection, staffing, marketing, and operational efficiency to achieve continuous operation for at least the initial six-month period. Failure to maintain continuous operation could impact the franchisee's compliance with the development schedule and potentially lead to consequences outlined in the Development Agreement.