What are the obligations of a Crisp & Green franchisee regarding site selection as detailed in Item 9, and how does this relate to the franchisor's assistance in site selection as described in Item 11?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in Franchise Agreement | Section in Area | |
|---|---|---|---|
| Development Agreement | |||
| a. Site selection and | Sections 3.01, 3.02, | Sections 3.B.3 and | |
| acquisition/lease | 3.03, and Exhibit C | 3.B.4 |
You will be required to locate a site that you believe is acceptable for your Franchised Restaurant and provide us with all information we require relating to the proposed site. We will have 30 days after we receive all of the information we require to notify you whether the site is approved. Unless we provide our specific approval, a proposed site is deemed not approved. If we cannot agree on a proposed site, we may elect to terminate that Franchise Agreement and retain the entire initial franchise fee.
We will evaluate each proposed site based on the market area, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics. In general, we believe that ideal sites for Restaurants are between 2,000 – 2,500 square feet, are located in an upscale urban or suburban multi-tenant development, are located on a building end-cap, have a patio, and have plentiful free parking spaces. However, we evaluate sites on a case by case basis and sites that are suitable for Restaurants may not necessarily have all of these characteristics. Once we have approved a site, it is your responsibility to conform the premises to local ordinances and building codes, and to obtain any required permits. Additionally, it is your responsibility to oversee the construction, remodeling, and/or decorating of the premises, according to the standards and guidelines we provide you.
(2) Review and make a decision regarding approval of sites for your Franchised Restaurant. (Franchise Agreement Sections 3.02 and 14.02).
After we have executed the Franchise Agreement, and after you have submitted a proposed site for the Franchised Restaurant which we have approved, you may proceed to negotiate the lease, sublease, or purchase agreement for the site.
You must provide the lease, sublease, or purchase agreement to us for our consideration and approval or disapproval prior to signing.
Although we may in some circumstances provide you with assistance in negotiating a lease or sublease, we are under no obligation to do so.
You must submit all site surveys, construction and remodeling plans, and specifications to us for our approval before beginning build-out for the Franchised Restaurant and all revised or "as built" plans and specifications during construction and development.
We have a required architectural vendor who you must use for the creation of the architectural plans for your Franchised Restaurant.
You must obtain a site survey from one of our approved vendors.
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations regarding site selection, referencing Sections 3.01, 3.02, 3.03, and Exhibit C of the Franchise Agreement, and linking it to Items 7, 8, and 11 of the disclosure document. This indicates that site selection is a critical responsibility of the franchisee, with further details available in the specified sections. Item 11 details the franchisor's assistance with site selection.
Specifically, the franchisee is responsible for locating a site they believe is suitable for a Crisp & Green restaurant and providing all necessary information about the proposed site to the franchisor. Crisp & Green then has 30 days to approve or disapprove the site. Without specific approval from Crisp & Green, the site is considered not approved. If the franchisor and franchisee cannot agree on a site, Crisp & Green can terminate the Franchise Agreement and retain the initial franchise fee.
Crisp & Green evaluates potential sites based on factors such as market area, population density, demographics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics. While Crisp & Green prefers sites between 2,000 and 2,500 square feet in upscale urban or suburban areas, ideally on a building end-cap with a patio and ample parking, they evaluate sites on a case-by-case basis. Once a site is approved, the franchisee must ensure the premises comply with local ordinances and building codes and obtain all necessary permits. The franchisee is also responsible for overseeing the construction, remodeling, and decorating of the premises according to Crisp & Green's standards and guidelines.
Crisp & Green will review and decide on the approval of sites for the franchisee's restaurant. After the Franchise Agreement is executed and a proposed site is submitted and approved, the franchisee can negotiate the lease, sublease, or purchase agreement for the site. The franchisee must provide the lease, sublease, or purchase agreement to Crisp & Green for approval before signing. While Crisp & Green may offer assistance in negotiating a lease or sublease, they are not obligated to do so. If the site is leased, the lease terms must be reasonably acceptable to Crisp & Green, and both the franchisee and landlord must execute Crisp & Green's standard lease addendum. The franchisee must use Crisp & Green's required architectural vendor for creating architectural plans and obtain a site survey from one of their approved vendors. Crisp & Green may periodically inspect the site during development but is not required to do so.