What is the purpose of the Franchise Addendum to Lease Agreement (Exhibit C) for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
After we have executed the Franchise Agreement, and after you have submitted a proposed site for the Franchised Restaurant which we have approved, you may proceed to negotiate the lease, sublease, or purchase agreement for the site.
You must provide the lease, sublease, or purchase agreement to us for our consideration and approval or disapproval prior to signing.
Although we may in some circumstances provide you with assistance in negotiating a lease or sublease, we are under no obligation to do so.
If you lease the site, the lease must contain terms that are reasonably acceptable to us, and you and the landlord will be required to execute our standard lease addendum, the form of which is attached as Exhibit C to the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 66)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee leases a site for their restaurant, Crisp & Green requires that the lease includes terms reasonably acceptable to them. To ensure this, the franchisee and the landlord must execute Crisp & Green's standard lease addendum, which is included as Exhibit C to the Franchise Agreement.
The purpose of the Franchise Addendum to Lease Agreement is to modify and supplement the lease agreement between the landlord and the tenant (franchisee). It outlines specific agreements between the landlord and tenant, considering the franchise relationship with Crisp & Green. These agreements take precedence over any conflicting terms in the original lease.
Several key provisions are typically included in the addendum. The landlord agrees to allow the tenant to remodel and decorate the premises according to the Crisp & Green franchise standards, including displaying proprietary marks and signs. The landlord also confirms that the use of the premises as a Crisp & Green restaurant complies with all existing restrictions and covenants and that no other party has conflicting contractual rights. The addendum also grants the tenant the right to assign the lease to Crisp & Green or its affiliates without needing the landlord's prior consent. However, such assignment requires written notice to the landlord.
Furthermore, the addendum addresses default and notice procedures. In case of a default by the tenant, the landlord must provide written notice to Crisp & Green simultaneously with the notice to the tenant. Crisp & Green then has the right, but not the obligation, to cure the default, with an additional 15 days beyond the tenant's cure period. Upon termination or expiration of the franchise agreement or the lease, Crisp & Green has the right to accept assignment of the lease. If Crisp & Green does not accept assignment upon lease expiration or termination, the landlord agrees to allow Crisp & Green to enter the premises to remove signs and other identifying items to protect its proprietary marks and franchise system.