Must the proposed transferee of a Crisp & Green franchise have sufficient financial resources?

According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to a new owner, the proposed transferee must demonstrate sufficient financial resources. Specifically, the proposed transferee, or its Principal Owners if the transferee is an entity, must provide Crisp & Green with all requested information in a timely manner. These individuals must be of good character and reputation, possess sufficient business experience and aptitude, and have the financial resources necessary to successfully operate the Crisp & Green franchise. Ultimately, the proposed transferee must meet Crisp & Green's approval.

This requirement ensures that new owners are capable of maintaining the brand's standards and financial stability. Crisp & Green needs to be confident that the new franchisee has the means to manage and grow the business effectively. This protects not only the franchisor's investment but also the interests of other franchisees within the Crisp & Green system.

In addition to financial resources, the transferee (or its operating partner) and its managers must complete Crisp & Green's initial training program to the franchisor's satisfaction. The transferee and its owners must also agree to be bound by the then-current standard form of franchise agreement with a term of ten years and related documents used in the state in which the Franchised Restaurant is located. The franchisee may also have to pay a transfer fee equal to the then-current initial franchise fee, which under this Agreement is $64,500 (or, if the proposed transferee is a then-current franchisee of a Restaurant, a transfer fee equal to Ten Thousand Dollars ($10,000)).