factual

Does the Crisp & Green non-compete agreement prevent participation in a Competitive Business as an advisor?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

I further agree that, during the term of my employment/service/association or ownership participation, I will not, directly or indirectly, engage or participate in any Competitive Business (defined below in this paragraph), any of which such prohibited behavior I understand and hereby explicitly acknowledge would or could be injurious to, or (in Franchisor's sole judgment) have an adverse effect upon, Franchisor's protectable interests in the Confidential Information, the CRISP & GREEN trademark, or the goodwill and/or reputation of Restaurants generally. I agree that I am prohibited from engaging in any Competitive Business as a proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant. For purposes of this Agreement, a "Competitive Business" means any business that: (1) operates as a restaurant or similar food-service provider and derives more than twenty percent (20%) of its revenue from selling salads and grain bowls in a fast-food, quick-service, drive-thru or drive-in format; or (2) grants franchises or licenses to others to operate the type of business specified in the preceding subparagraph (other than a CRISP & GREEN-branded restaurant operated under a franchise agreement with Franchisor). Despite the foregoing definition of a Competitive Business, nothing under this Agreement or the Franchise Agreement will prevent Individual from owning for investment purposes less than five percent (5%) of a Competitive Business whose stock or other forms of ownership interest are publicly traded on a recognized United States stock exchange, and so long as neither Individual nor Franchisee controls the company in question.

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to the 2024 Crisp & Green Franchise Disclosure Document, the non-compete agreement explicitly prohibits participation in a Competitive Business as an advisor. This restriction applies during the term of employment, service, association, or ownership participation with Crisp & Green.

The agreement defines a "Competitive Business" as any business that operates as a restaurant or similar food-service provider deriving more than 20% of its revenue from selling salads and grain bowls in a fast-food, quick-service, drive-thru, or drive-in format. It also includes businesses that grant franchises or licenses to others to operate similar businesses, excluding Crisp & Green-branded restaurants operated under a franchise agreement with the company.

However, there is an exception: an individual may own less than 5% of a Competitive Business for investment purposes, provided the stock or ownership interest is publicly traded on a recognized United States stock exchange, and neither the individual nor the franchisee controls the company. This exception allows for minor investments in publicly traded competitors without violating the non-compete agreement.

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.