What should a prospective Crisp & Green franchisee consider regarding the effect and costs of compliance with local regulations?

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The restaurant industry is heavily regulated. A wide variety of Federal, state and local laws, rules and regulations have been enacted that may impact the operation of your Franchised Restaurant, and may include those which: (a) establish a variety of standards, specifications, and requirements, including zoning and permitting matters, for the location, construction, design, maintenance, and operation of the Restaurant's premises; (b) set standards pertaining to employee health and safety; (c) regulate matters affecting the health, safety, and welfare of your guests (such as regulations relating to health and sanitation requirements; access by persons with disabilities; employee practices concerning the storage, handling, cooking, and preparation of food; restrictions on smoking; the availability of and requirements for public accommodations; and fire safety and general emergency preparedness); (d) impose requirements for food labeling and identification; (e) regulate marketing and promotional activities; and (f) set minimum standards for wages, benefits, or working conditions that must be afforded to employees. State and local agencies inspect restaurants to ensure that they comply with these laws and regulations. You should investigate whether there are regulations and requirements that may apply in the geographic area in which you are interested in locating your Franchised Restaurant and you should consider both their effect and costs of compliance.

Many of the laws, rules and regulations that apply to businesses generally, such as the Americans With Disabilities Act, Federal Wage and Hour Laws and the Occupational Safety and Health Act, also apply to restaurants and will apply to your Franchised Restaurant. The U.S. Food and Drug Administration, the U.S. Department of Agriculture, and state and local health departments administer and enforce laws and regulations that govern food preparation and service and restaurant sanitary conditions. The federal Clean Air Act and various implementing state laws require certain state and local areas to meet national air quality standards limiting emissions of ozone, carbon monoxide, and particulate matters, including caps on emissions from commercial food preparation. Some areas have also adopted or are considering proposals that would regulate indoor air quality.

The Nutrition Labeling and Education Act (NLEA) sets regulations for food labeling, including nutritional label standards, nutrient content claims, and health claims. The NLEA applies to virtually all foods in the food supply, including food served and sold in restaurants.

Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–13)