What is the relationship between the 'Standards' mentioned in Item 8 and the franchisee's obligations regarding site selection as detailed in Item 9 for Crisp & Green?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
To help ensure a uniform image and uniform quality of products and services throughout our System, you must maintain and comply with our Standards. Our Standards exist to protect our interest in the System and the Marks and not for the purpose of establishing any control, or the duty to take control, over those matters that are reserved to you and are your responsibility.
Site Selection
You must operate the Franchised Restaurant at a location that meets our site selection requirements and that we have approved. If we have approved a site for your Franchised Restaurant at the time you
execute the Franchise Agreement, we will specify the site as the premises for your Franchised Restaurant in the Franchise Agreement at the time you sign the Franchise Agreement. In all other cases, the Franchise Agreement will describe a preliminary designated area and you will be responsible for identifying a site within the preliminary designated area that meets our approval. Upon our approval of the site, we will designate the site as the premises for your Franchised Restaurant in the Franchise Agreement. If you utilize a broker to identify a location, you will be responsible for any costs associated therewith. We will not unreasonably withhold our approval of a site that meets our then-current criteria for demographic characteristics; traffic patterns; parking; character of the neighborhood; competition from, proximity to, and nature of other businesses; other commercial characteristics; and the proposed site's size, appearance, and other physical characteristics.
We must approve of the lease, sublease, or purchase contract (which we refer to as the site acquisition document) for the premises of your Franchised Restaurant before you sign such document. If you lease the premises, the lease must contain the terms and provisions that are reasonably acceptable to us, and you and the landlord must execute the standard form of lease addendum (attached as Exhibit C to the Franchise Agreement). Within 10 days after our approval of the site acquisition document, you must send us the fully signed site acquisition document, together with the signed lease addendum, if applicable, for the premises. You may not relocate the Franchised Restaurant without our prior approval.
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Item 8 states that franchisees must adhere to the brand's standards to ensure uniformity in image and quality across the system. These standards are designed to protect Crisp & Green's interests in its system and marks. Item 9 outlines the franchisee's obligations, explicitly linking site selection to these standards.
Specifically, Item 9 indicates that compliance with Crisp & Green's standards and policies is an obligation, referencing Items 6, 7, 8, 11, 14, and 16 of the FDD. This means that when selecting a site, a Crisp & Green franchisee must ensure the location meets the franchisor's requirements as detailed in the mentioned items, including those related to site selection criteria. Item 8 further clarifies that the franchisee must operate the restaurant at a location that meets Crisp & Green's site selection requirements, which the franchisor must approve.
Item 8 lists several criteria that Crisp & Green will consider when evaluating a potential site, including demographic characteristics, traffic patterns, parking availability, the character of the neighborhood, competition, proximity to other businesses, and the site's physical attributes like size and appearance. The franchisee is responsible for identifying a site within a designated area that meets these standards, and Crisp & Green will not unreasonably withhold approval of a site that meets their criteria. The franchisee is also responsible for any costs associated with using a broker to identify a location. Furthermore, Crisp & Green must approve the lease, sublease, or purchase contract for the premises, and the lease must include terms reasonably acceptable to the franchisor, including the execution of a standard lease addendum.
In summary, the 'Standards' mentioned in Item 8 directly impact a franchisee's site selection obligations as detailed in Item 9. Franchisees must find a location that adheres to Crisp & Green's standards and obtain franchisor approval on both the site and the site acquisition documents (lease or purchase agreement).