How much notice must I give Crisp & Green before transferring my franchise to a limited liability entity?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
On thirty (30) days' notice to us, you (if you are an individual or general partnership) may transfer this Agreement, in conjunction with a transfer of all of the assets of the Franchised Restaurant, by an agreement in form and substance approved by us, to a limited liability Entity which conducts no business other than the Franchised Restaurant (and other Restaurants under franchise agreements granted by us), and of which you own and control all of legal and beneficial ownership interest and voting interest.
None of the foregoing assignments shall relieve you or your Principal Owners of your respective obligations hereunder, and you and your Principal Owners remain jointly and severally liable for all obligations hereunder.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if you are an individual or general partnership, you must provide Crisp & Green with thirty (30) days' notice before transferring your franchise agreement, along with all assets of the franchised restaurant, to a limited liability entity.
Several conditions apply to this type of transfer. The limited liability entity must not conduct any business other than operating the Crisp & Green franchised restaurant (or other restaurants franchised by Crisp & Green). Additionally, you must own and control all legal and beneficial ownership and voting interests in the entity.
It's important to note that this type of transfer does not relieve you or your principal owners of your obligations under the franchise agreement. You and your principal owners will remain jointly and severally liable for all obligations. The transfer agreement must also be in a form and substance approved by Crisp & Green.