What is the purpose of the 'Other Fees' section in the Crisp & Green FDD?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| believe that you have failed adequately to address or resolve any customer complaints, we may, without your consent, resolve any complaints to our satisfaction and charge you an amount sufficient to cover our reasonable costs and expenses in resolving the customer complaint. | |||
| Additional Cure | Our cost and expense if we take any action to cure any default by you under the Franchise Agreement, including costs of collection for unpaid amounts | Upon demand | Due only if you are in default under your Franchise Agreement, in which case you must reimburse us for the additional expenses we incur (including reasonable attorneys' fees) as a result of your default and to enforce and terminate your Franchise Agreement if necessary. |
| Expenses and | |||
| Collection Costs | |||
| Damages upon | Will vary under the circumstances | 15 days after termination | See Note 3. |
| Termination | |||
| Securities Offering | Our actual expenses | Upon demand | Payable only if you propose to engage in a public or private securities offering, to reimburse us for our reasonable costs and expenses (including legal and accounting fees) to evaluate your proposed offering. |
| Tax Assessment | Our actual expenses | Upon demand | Payable only if there is a sales tax, gross receipts tax, or similar tax or assessment (other than income tax) imposed against us with respect to any payments you make to us under the Franchise Agreement. |
Notes:
- (1) All fees are imposed by and payable to Crisp & Green Franchising LLC unless otherwise specifically noted. All fees are imposed uniformly and are non-refundable.
- (2) In the event your Franchised Restaurant is not open and operating in compliance with our standards within nine months after the effective date of your Franchise Agreement (or within the required opening date for a subsequent Franchised Restaurant if you have signed an Area Development Agreement) and we have not granted you an extension, you will be required to pay us the Minimum Royalty Fee of Seven Thousand Five Hundred Dollars ($7,500) per month plus seven percent (7%) of your Gross Sales (if any). The Minimum Royalty Fee will be charged monthly for each month until your Franchised Restaurant opens in compliance with our standards and will be pro-rated for partial months. We also have the right to terminate your Franchise Agreement if your Franchised Restaurant is not open by the required opening date.
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to the 2024-2025 Crisp & Green Franchise Disclosure Document, the 'Other Fees' section outlines various fees that a franchisee may incur beyond the initial franchise fee, royalty fees, and national marketing fees. These additional fees cover a range of circumstances, primarily related to non-compliance, specific requests, or additional services provided by Crisp & Green. These fees are uniformly imposed and non-refundable.
For instance, if a Crisp & Green franchisee defaults on the Franchise Agreement, they may be required to cover Crisp & Green's costs and expenses to cure the default, including collection costs and attorney's fees. If the Franchise Agreement is terminated due to the franchisee's default, they must pay damages, the amount of which will vary based on the circumstances. The franchisee may also be responsible for Crisp & Green's expenses related to securities offerings or tax assessments under specific conditions.
Additionally, if a Crisp & Green restaurant isn't open and operating within nine months of the Franchise Agreement's effective date, the franchisee may be required to pay a Minimum Royalty Fee of $7,500 per month, plus 7% of Gross Sales (if any), until the restaurant opens in compliance with standards. This fee is pro-rated for partial months. Crisp & Green also retains the right to terminate the Franchise Agreement if the restaurant doesn't open by the required date. The franchisee may also be charged if Crisp & Green resolves customer complaints on their behalf.