Can Crisp & Green operate or franchise other Crisp & Green restaurants within a franchisee's Designated Area at Non-Traditional Sites?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Development Agreement do not expressly prohibit.
Certain sites, locations, or venues have characteristics that make them distinct from locations that could generally be developed into Restaurants, such as sites that independently generate customer traffic flow separate from the general customer traffic flow of the surrounding area, or that by their nature are not tied to a particular physical location ("Non-Traditional Sites"). Non-Traditional Sites include: military bases; shopping malls (whether open-air or enclosed); large big-box retail outlets; transportation-related venues (e.g., airports, train or bus stations, marinas, travel plazas or toll roads); sports or entertainment venues (e.g., stadiums, arenas, concert halls); major industrial or office complexes, hotels, educational facilities (e.g., school, college, and university campuses); casinos; fitness centers, hospitals and related rehabilitation or healthcare facilities; governmental institutions; amusement or recreational facilities (e.g., theme parks, outdoor municipal parks, zoos, or museums); grocery stores or departments stores; mobilebased channels of distribution (e.g., food trucks); and any co-branding locations or business endeavors where a Restaurant's operations are inextricably associated with, or such operations are contained within or sharing the same physical building or operational premises as, another business (such as, for example and without limitation, a gas/convenience store or another restaurant concept). Non-Traditional Sites are specifically excluded from your Designated Area and Development Area, meaning that we have the right to develop Restaurants or license to others the right to develop Restaurants at Non-Traditional Sites located within the borders of your Designated Area or Development Area.
Because we and others may establish and operate Restaurants at Non-Traditional Sites in your Designated Area or Development Area, and because of the reserved rights above, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands that we control. We do not have to pay you if we solicit or accept orders from inside your Designated Area or Development Area.
You are not restricted from accepting orders from consumers outside of your Designated Area.
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green retains the right to establish and operate, or authorize others to establish and operate, restaurants at Non-Traditional Sites, regardless of whether these sites are within a franchisee's Designated Area or Development Area. This means that even if a franchisee has a designated territory, Crisp & Green can still open or franchise other locations within that territory if they are considered Non-Traditional Sites.
Non-Traditional Sites are defined as locations with characteristics that make them distinct from typical restaurant locations. These include sites that generate independent customer traffic, such as military bases, shopping malls, transportation venues like airports and train stations, sports and entertainment venues, industrial or office complexes, hotels, educational facilities, casinos, fitness centers, hospitals, governmental institutions, amusement parks, grocery stores, mobile food trucks, and co-branding locations. Because Crisp & Green can operate or franchise at Non-Traditional Sites within a franchisee's Designated Area, franchisees do not receive an exclusive territory.
This lack of exclusivity means that a Crisp & Green franchisee may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Crisp & Green, even within their Designated Area. The FDD clearly states that Crisp & Green is not obligated to compensate franchisees for orders solicited or accepted from within their Designated Area or Development Area. This is a significant factor for potential franchisees to consider, as it directly impacts the potential for competition and revenue within their defined territory.