What obligations does a Crisp & Green franchisee have regarding site selection, as mentioned in Item 8 and Item 9?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in Franchise Agreement | Section in Area | Disclosure Document Item | |
|---|---|---|---|---|
| Development Agreement | ||||
| a. Site selection and | Sections 3.01, 3.02, | Sections 3.B.3 and | Items 7, 8, and 11 | |
| acquisition/lease | 3.03, and Exhibit C | 3.B.4 |
(1) Describe your preliminary designated area and your designated area (Franchise Agreement Sections 2.02 and 3.02).
(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.
If you lease the site, the lease must contain terms that are reasonably acceptable to us, and you and the landlord will be required to execute our standard lease addendum, the form of which is attached as Exhibit C to the Franchise Agreement.
Neither we nor our affiliates generally own the sites at which Restaurants are operated, which means you will be negotiating with independent third parties relating to the lease, sublease, or purchase of the site for your Franchised Restaurant. (Franchise Agreement Sections 3.02 and 3.03).
- (4) Provide you with sample floor plans and layouts for a Restaurant to assist you in locating and developing an appropriate site.
These sample materials are intended to assist you in working with contractors and vendors to build out your Franchised Restaurant according to our Standards.
The sample materials are not designed to meet all requirements of federal, state, or local laws or regulations that might apply to your Franchised Restaurant; you will be solely responsible for ensuring that the design and construction or remodeling of your Franchised Restaurant meets with all requirements of such laws and regulations, including any local zoning or environmental regulations, ordinances, building codes, permit requirements, and lease restrictions.
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees have several obligations regarding site selection. Item 9 outlines that site selection and acquisition/lease are franchisee obligations, referencing Sections 3.01, 3.02, 3.03, and Exhibit C of the Franchise Agreement, as well as Items 7, 8, and 11 of the FDD. This indicates that franchisees are responsible for finding and securing a suitable location for their Crisp & Green restaurant.
Item 11 provides further detail on Crisp & Green's role in the site selection process. Before a franchisee opens their restaurant, Crisp & Green will describe the preliminary designated area and the designated area. Crisp & Green will also review and make a decision regarding approval of sites for the franchised restaurant. The franchisee must submit a proposed site, and after Crisp & Green approves it, the franchisee can negotiate the lease, sublease, or purchase agreement. The franchisee must then provide the lease, sublease, or purchase agreement to Crisp & Green for their consideration and approval or disapproval before signing.
Crisp & Green may provide sample floor plans and layouts to assist in locating and developing an appropriate site. However, the franchisee is ultimately responsible for ensuring the design and construction meet all applicable laws and regulations, including zoning, environmental regulations, building codes, and permit requirements. The FDD states that Crisp & Green or its affiliates do not generally own the restaurant sites, meaning franchisees will typically negotiate with independent third parties for the lease, sublease, or purchase of the site. The lease must contain terms reasonably acceptable to Crisp & Green, and the franchisee and landlord must execute Crisp & Green's standard lease addendum.