Can Crisp & Green require a franchisee to materially refurbish the premises of their Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
We also may require you to materially refurbish the premises of your Franchised Restaurant to conform to the System's then-current design, trade dress, color schemes, and presentation of the Marks. Such refurbishment may include structural changes, installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements, and must be completed pursuant to such standards, specifications, and deadlines as we may specify as are standard to the System at the time. We may not require you to do so more than once every five years, unless sooner required by your real estate lease. (Franchise Agreement, Section 9.01)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–44)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Crisp & Green may require franchisees to materially refurbish their restaurant premises. This refurbishment is to ensure the restaurant conforms to the system's current design, trade dress, color schemes, and presentation of the brand's trademarks.
The refurbishment may include structural changes, the installation of new equipment and signs, remodeling, redecoration, and modifications to existing improvements. Crisp & Green will specify the standards, specifications, and deadlines for the refurbishment, ensuring they align with the standards of the Crisp & Green system at the time of the refurbishment.
However, Crisp & Green cannot require franchisees to refurbish more than once every five years, unless the real estate lease requires it sooner. This provides some predictability for franchisees in terms of capital expenditure, but it is essential to note that lease terms can override this limitation. Franchisees should carefully review their lease agreements and factor in potential refurbishment costs when evaluating the franchise opportunity.