What is the penalty if a Crisp & Green franchisee uses a brand or supplier that is not approved?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
any of the foregoing items. In the event you use any brand or supplier that is not then approved by us, we may charge you up to $1,500 per day until such unauthorized use ceases.
We apply the following general criteria in approving a proposed supplier or brand: (i) the ability to make products or provide services in conformity with our specifications; (ii) the reputation and integrity of the supplier or brand; (iii) the financial condition and insurance coverage of the supplier; and (iv) System uniformity. Determinations of whether a supplier or brand meets our specifications and quality and safety standards will be made by us in our sole discretion. We have no obligation to approve any supplier or brand.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, if a franchisee uses a brand or supplier that has not been approved by Crisp & Green, the franchisee may be charged up to $1,500 per day until the unauthorized use stops.
Before using an unapproved brand or supplier, a Crisp & Green franchisee must first seek approval from the company. This requires notifying Crisp & Green and submitting sufficient information, specifications, and samples for review. Additionally, the franchisee must pay a $2,500 fee to cover the costs of the investigation. Crisp & Green will then notify the franchisee of their decision within a reasonable time frame.
Crisp & Green outlines specific criteria for approving suppliers or brands, including their ability to meet the company's specifications, their reputation and integrity, their financial condition and insurance coverage, and their contribution to system uniformity. However, Crisp & Green retains the sole discretion to determine whether a supplier or brand meets these standards and has no obligation to approve any proposed supplier or brand. This means that even if a franchisee believes a supplier meets the criteria, Crisp & Green can still deny the request.
This policy highlights the importance of adhering to Crisp & Green's approved supplier list to avoid potential penalties and maintain brand consistency. It also demonstrates the franchisor's control over the supply chain and product quality within the franchise system.