Does Crisp & Green require franchisees to sell gift certificates and vouchers?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
You must offer for sale at or through your Franchised Restaurant all products and services that we specify from time to time. You are prohibited from offering for sale, selling, or distributing any other products or services apart from those we specify from time to time, and you are prohibited from engaging in any marketing, advertising, or solicitation activities of any kind in the Designated Area of other Restaurants unless such activities are conducted with other appropriate franchisees pursuant to a Local Marketing Cooperative. We may make changes, updates, and modifications to the products and services that we require you to provide at any time and from time to time, without limitation.
The products and services that we require you to provide include our menu of food items sold for purchase and consumption at the premises, on a "to-go" basis, or, if you have been approved to operate one, through delivery to a Crisp & Go Location; food items sold for consumption off the premises; gift certificates and vouchers; apparel and accessories; catering and delivery services; and other goods and services that we specify from time to time.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 51–52)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, franchisees are required to offer gift certificates and vouchers for sale at their franchised restaurants. Additionally, franchisees must honor these gift certificates and vouchers regardless of where they were initially purchased. This requirement ensures brand consistency and provides customers with flexibility in using their gift cards across all Crisp & Green locations.
This policy is part of a broader set of requirements regarding the products and services that Crisp & Green franchisees must offer. The FDD states that franchisees must offer all products and services that Crisp & Green specifies from time to time, and are prohibited from selling any other products or services without approval. This allows Crisp & Green to maintain control over the brand's offerings and ensure quality and consistency across all franchise locations.
The inclusion of gift certificate and voucher sales in the definition of "Gross Sales" has financial implications for franchisees. The 2024 FDD specifies that revenue from these transactions is included in Gross Sales when it is recognized under applicable accounting standards and the rules of Crisp & Green's gift card or loyalty program. Gross Sales are used to calculate royalty fees and other payments to Crisp & Green, so franchisees need to understand how these sales are accounted for and reported.