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What is the relationship between the site selection process described in Item 8 and the pre-opening assistance provided by Crisp & Green in Item 11?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

G, COMPUTER SYSTEMS, AND TRAINING

Except as listed below, Crisp & Green Franchising LLC is not required to provide you with any assistance.

Pre-Opening Assistance

Under the Franchise Agreement: Before you open your Franchised Restaurant, we will:

  • (1) Describe your preliminary designated area and your designated area (Franchise Agreement Sections 2.02 and 3.02).
  • (2) Review and make a decision regarding approval of sites for your Franchised Restaurant. (Franchise Agreement Sections 3.02 and 14.02).
  • 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. Neither we nor our affiliates generally own the sites at which Restaurants are operated, which means you will be negotiating with independent third parties relating to the lease, sublease, or purchase of the site for your Franchised Restaurant. (Franchise Agreement Sections 3.02 and 3.03).
  • (4) Provide you with sample floor plans and layouts for a Restaurant to assist you in locating and developing an appropriate site. These sample materials are intended to assist you in working with contractors and vendors to build out your Franchised Restaurant according to our Standards. The sample materials are not designed to meet all requirements of federal, state, or local laws or regulations that might apply to your Franchised Restaurant; you will be solely responsible for ensuring that the design and construction or remodeling of your Franchised Restaurant meets with all requirements of such laws and regulations, including any local zoning or environmental regulations, ordinances, building codes, permit requirements, and lease restrictions. It is your responsibility to prepare all required construction and remodeling plans and specifications to suit your Franchised Restaurant and to construct, remodel and decorate the premises. You must submit all site surveys, construction and remodeling plans, and specifications to us for our approval before beginning build-out for the Franchised Restaurant and all revised or "as built" plans and specifications during construction and development. We have a required architectural vendor who you must use for the creation of the architectural plans for your Franchised Restaurant. You must obtain a site survey from one of our approved vendors. We may, but are not required to, periodically inspect the site during its development. (Franchise Agreement – Section 3.04).
  • (5) Sell (and cause our affiliates that are approved suppliers, as applicable, to sell) you any items and services that we or our affiliates are an approved supplier for. (Franchise Agreement Section 3.05).

  • (6) Provide you access to our confidential operations manual and other confidential technical manuals or documents ("Operations Manual"). Although we will provide you with a copy of the Operations Manual, the Operations Manual remains at all times our property. The Operations Manual may include various tangible and intangible, electronic forms of media, including material that we make available to you by providing you with internet access to such material through a restricted website. (Franchise Agreement Sections 4.01 and 4.04).
  • (7) Provide, pursuant to our initial training program, your General Manager, Approved Operator (if applicable), and at least two other management level employees with our Crisp Academy program, which may be conducted at our corporate offices or another location we select and at one or more of the Restaurants. (Franchise Agreement Section 4.01). You will be responsible for all compensation and expenses (including transportation, lodging, food, and incidental expenses) incurred in connection with any training programs. This training is described in detail below in this Item 11.
  • (8) Provide on-site assistance prior to and during the opening of your Franchised Restaurant. (Franchise Agreement Section 3.07).

Under the Area Development Agreement: Before you open your Franchised Restaurant:

  • (1) We will approve or deny your proposed site for each Franchised Restaurant. (Area Development Agreement Section 3.B.3).
  • (2) We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location as we deem appropriate. (Area Development Agreement Section 3.B.3).

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, Item 11 outlines the pre-opening assistance provided by Crisp & Green, which is directly related to the site selection process. Before a Crisp & Green franchisee can open their restaurant, Crisp & Green will review and decide on the approval of potential sites. The franchisee is responsible for finding a site and providing all necessary information to Crisp & Green for evaluation. Crisp & Green then has 30 days to approve or deny the site. If Crisp & Green does not approve a site, they may terminate the Franchise Agreement and retain the initial franchise fee.

Crisp & Green evaluates sites based on factors such as market area, population density, visibility, traffic flow, competition, accessibility, parking, and size. They prefer sites between 2,000 and 2,500 square feet in upscale urban or suburban areas, ideally located on a building end-cap with a patio and ample parking. Crisp & Green also provides sample floor plans and layouts to assist franchisees in developing an appropriate site, though franchisees are ultimately responsible for ensuring the site meets all legal and regulatory requirements.

Furthermore, the franchisee is responsible for preparing all construction and remodeling plans, which must be submitted to Crisp & Green for approval before build-out. A required architectural vendor must be used for creating these plans, and a site survey must be obtained from an approved vendor. While Crisp & Green may periodically inspect the site during development, they are not obligated to do so. This close oversight and required approvals highlight the importance of the site selection process and its integration with the pre-opening assistance provided by Crisp & Green to ensure brand consistency and operational standards.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.