Can Crisp & Green operate a Crisp & Green Restaurant in the Development Area under an Area Development Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ITORY
Under an Area Development Agreement
If you enter into an Area Development Agreement, you will receive the right to develop and operate Franchised Restaurants in an agreed upon specified geographic area. The number of locations you must open in a particular area will vary depending on the area. We will negotiate this number with you. We will designate the area at the time you sign your Area Development Agreement. This area is referred to in your Area Development Agreement as the "Development Area." The deadlines by which you must sign each franchise agreement and open each Franchised Restaurant (the "Development Schedule") will be designated in the Area Development Agreement.
As long as your Area Development Agreement is in effect, and you are not in default under the Area Development Agreement or any other agreement with us, then except as described below we will not grant to anyone else a franchise to operate, and we will not operate, a CRISP & GREEN Restaurant physically located in your Development Area prior to the earlier of (i) the expiration or termination of the Area Development Agreement, and (ii) the date on which you must sign the franchise agreement for your last Franchised Restaurant according to the Development Schedule. This is the only restriction on us in
your Development Area. Additionally, we can exercise any of the rights in your Development Area that are discussed below for a Designated Area.
If you fail to meet the Development Schedule or otherwise breach your Area Development Agreement, you will lose your right to continue to develop Franchised Restaurants in your Development Area. The Area Development Agreement does not grant any options, rights of first refusal, or similar rights to you to acquire additional development rights in the Development Area or contiguous areas. You do not have the right to change your Development Area. If the Development Area covers more than one city, county, or designated market area, the protection for each particular city, county or designated market area will also expire on the date when we determine the designated area to be given to you under a franchise agreement for your final Franchised Restaurant to be developed in that city, county, or designated market area
Under a Franchise Agreement
You are permitted to operate the Franchised Restaurant only at an approved site.
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if you enter into an Area Development Agreement with Crisp & Green, you, as the franchisee, gain the right to develop and operate franchised restaurants within a specific geographic area, referred to as the "Development Area." The number of locations required in that area will be negotiated between you and Crisp & Green and specified in the Area Development Agreement. The agreement will also include a "Development Schedule," outlining the deadlines for signing each franchise agreement and opening each restaurant.
As long as the Area Development Agreement remains in effect and you are not in default, Crisp & Green will not grant another franchise or operate a Crisp & Green restaurant physically located within your Development Area. This restriction lasts until the earlier of the Area Development Agreement's expiration or termination, or the date you are required to sign the franchise agreement for your last restaurant per the Development Schedule. However, this is the only restriction on Crisp & Green within your Development Area, and they can exercise rights in your Development Area for a Designated Area.
It is important to note that failure to meet the Development Schedule or any other breach of the Area Development Agreement will result in the loss of your right to continue developing restaurants in the Development Area. The Area Development Agreement does not provide any options or rights to acquire additional development rights in the Development Area or adjacent areas, and you cannot change your Development Area. If the Development Area spans multiple cities, counties, or designated market areas, the protection for each specific area expires when Crisp & Green determines the designated area to be given to you under a franchise agreement for your final franchised restaurant to be developed in that city, county, or designated market area.