What is Crisp & Green's obligation regarding developing or franchising other restaurants within the Development Area if the developer is in compliance?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
erritory described in the Rider (the "Development Area").
- B. You agree to be bound by the "Development Schedule" set forth in the Rider. Time is of the essence for the development of each Franchised Restaurant under this Agreement and for the signing of each Franchise Agreement as set forth in the Development Schedule. Each Franchised Restaurant must be developed and operated by you under a separate Franchise Agreement that you enter into with us.
- C. Unless otherwise indicated in the Rider and except as set forth in Section D below or otherwise in this Agreement, if you are in compliance with this Agreement and any and all Franchise Agreement(s) you have with us, we will not develop or operate—or grant anyone else a franchise to develop and operate—a CRISP & GREEN Restaurant from any location
in the Development Area before the earlier of: (i) the expiration or termination of this Agreement; and (ii) the date on which you must sign the Franchise Agreement for your last Franchised Restaurant under the terms of the Development Schedule. Notwithstanding anything in this Agreement, when the earliest of the above events occurs: (i) the Development Area will expire; and (ii) we will be entitled to develop and operate—or to franchise others to develop and operate—CRISP & GREEN Restaurants from locations in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been signed between us and you and that has not been terminated.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if a developer is in compliance with the Development Agreement and any Franchise Agreements, Crisp & Green will not develop, operate, or franchise others to develop or operate a Crisp & Green restaurant within the Development Area. This protection lasts until the earlier of the Development Agreement's expiration or termination, or the date the developer must sign the Franchise Agreement for their last restaurant as per the Development Schedule.
However, once the earliest of those events occurs, Crisp & Green is entitled to develop, operate, or franchise others within the Development Area, unless otherwise specified in a signed and un-terminated Franchise Agreement between Crisp & Green and the developer. If the developer fails to meet the Development Schedule, Crisp & Green can choose to replace parts of the Development Area not yet under a Franchise Agreement with new territory, based on the developer's demonstrated intent and ability to proceed with the next Franchise Agreement.
It is important to note that Crisp & Green and its affiliates retain rights and discretion regarding the Marks, the System, and the sale of similar products and services. They can engage in any business activities within or outside the Development Area. This includes establishing Crisp & Green restaurants outside the Development Area, even if they compete with the franchisee, operating restaurants at Non-Traditional Sites, selling products through alternative channels, and operating other restaurant brands within the Development Area.