What is the maximum fee a Crisp & Green franchisee may be charged for an extension of the opening deadline?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
fied training and support for your opening.
We may, but are not obligated to, grant you an extension of the deadline for opening your Franchised Restaurant if we determine, in our sole discretion, that you are expending good faith best efforts to complete each phase of the site development and opening process and pay a fee for the extension of up to $5,000. However, in the event your Franchised Restaurant is not open and operating by the required opening date, you will be required to pay us a minimum royalty payment of $7,500 per month, plus 7% of any Gross Sales you receive, for each month until your Franchised Restaurant opens (pro-rated for partial months). Additionally, if the Franchised Restaurant does not open for operation in compliance with our standards by the required opening date, unless you have received an approved extensio
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–44)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee may be charged up to $5,000 for an extension of the deadline to open their restaurant. Crisp & Green may grant an extension if they determine, at their sole discretion, that the franchisee is making a good faith effort to complete the site development and opening process.
However, if the Crisp & Green restaurant is not open by the required date and an extension has not been approved, the franchisee will be required to pay a minimum royalty payment of $7,500 per month, plus 7% of any Gross Sales received. This payment continues each month until the restaurant opens, and is pro-rated for partial months.
If the Crisp & Green restaurant does not open in compliance with the brand's standards by the required opening date, and without an approved extension, Crisp & Green has the right to terminate the Franchise Agreement. This highlights the importance of meeting deadlines or securing an extension to avoid financial penalties or termination of the franchise agreement.