What is the purpose of the Crisp & Green addendum?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
P & GREEN FRANCHISING LLC, a
| Minnesota limited liability compar | ny |
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| (Name of corporation, limited liability company or partnership) | |
| By: | By: |
| Print Name: | Print Name: |
| Title: | Title: |
ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF WISCONSIN
This Addendum pertains to franchises sold in the State of Wisconsin and is for the purpose of complying with Wisconsin statutes and regulations. This Addendum shall be of no force and effect unless the jurisdictional requirements of the Wisconsin laws applicable to franchises and any regulations thereunder are met independently without reference to this Addendum.
| | State | Effective Date | |---|---|---| | California | See Separate FDD | | | Hawaii | Pending | | | Illinois | Pending | | | Indiana | April 24, 2024, as amended __________ | | | Maryland | See Separate FDD | | | Michigan | April 30, 2024 | | | Minnesota | June 12, 2024, as amended __________ | | | New York | See Separate FDD | | | North Dakota | June 17, 2024, as amended __________ | | | Rhode Island | May 11, 2024, as amended __________ | | | South Dakota | April 30, 2024 | | | Virginia | June 24, 2024, as amended __________ | | | Washington | See Separate FDD | | | Wisconsin | April 29, 2024, as amended __________ | | 2. NON-RENEWAL AND TERMINATION. The following paragraph is added to the end of Sections 14.01 and 15.01:
Section 135.04 of the Wisconsin Fair Dealership Law includes the requirement that, in certain circumstances, a franchisee receive 90 days' notice of termination, cancellation, non-renewal or substantial change in competitive circumstances. The notice shall state all the reasons for termination, cancellation, non-renewal or substantial change in competitive circumstances and shall provide that the franchisee has 60 days in which to rectify any claimed deficiency and shall supersede the requirements of the Franchise Agreement to the extent they may be inconsistent with the Law's requirements. If the deficiency is rectified within 60 days the notice shall be void. The above-notice provisions shall not apply if the reason for termination, cancellation or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the addenda to the franchise agreement and area development agreement are for the purpose of complying with specific state statutes and regulations. These addenda apply to franchises sold in particular states such as Wisconsin, North Dakota, Virginia, Illinois, Washington, Rhode Island, Minnesota, and New York.
For a prospective Crisp & Green franchisee, this means that the standard franchise agreement may be modified by an addendum that reflects the specific legal requirements of the state in which the franchise is located or where the franchisee resides. These addenda ensure that the franchise operations comply with local laws, which can vary significantly from state to state. For example, the Virginia addendum addresses franchise termination rights, while the North Dakota addendum modifies sections of the Area Development Agreement related to legal costs, termination penalties, and waivers of claims.
It is important to note that these addenda are only effective if the jurisdictional requirements of the respective state laws are met independently, without relying on the addendum itself. This implies that the underlying franchise agreement must already be in compliance with state laws, and the addendum serves to further clarify or modify specific terms. Franchisees should carefully review any state-specific addenda with legal counsel to fully understand their rights and obligations under the franchise agreement, as these addenda can significantly impact the terms of the franchise relationship.
Furthermore, some addenda, such as those for Illinois, Washington, Wisconsin, and New York, are only applicable if the developer is domiciled in that state, the offer of the franchise is made or accepted in that state, or the franchise business is or will be located in that state. This ensures that the state-specific regulations are appropriately applied based on the franchisee's location and business activities. Therefore, franchisees need to verify which addenda apply to their specific circumstances to ensure full compliance with all relevant laws and regulations.