Does Crisp & Green require franchisees to truthfully fill out the Franchisee Acknowledgment attached as Exhibit F?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
eveloped and own a comprehensive System (defined below in Section 1.04) for developing and operating Restaurants.
- 1.02 Your Acknowledgments. You have read this Agreement and our Franchise Disclosure Document. You understand the terms of this Agreement and accept them as being reasonably necessary to maintain the uniformity of our high quality standards at all Restaurants in order to protect the goodwill of the Marks and the integrity of the System. You have conducted an independent investigation of the business contemplated by this Agreement and recognize that the restaurant industry is highly competitive, with constantly changing market conditions. You recognize that the nature of restaurants may change over time, that an investment in a Restaurant involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources. You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance. You or your Principal Owners shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit F.
- 1.03 Your Representations. You and your Principal Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Principal Owners has made any untrue statement of any material fact or has omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Principal Owners has any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise completely and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this Agreement will not violate any other agreement to which you or of any of your Principal Owners may be bound. You recognize that we have approved your franchise application
in reliance on all of the statements you and your Principal Owners have made in connection therewith.
1.04 Certain Definitions. The terms listed below have the meanings which follow them and include the plural as well as the singular. Other terms are defined elsewhere in this Agreement in the context in which they arise.
"Affiliate" – Any person or Entity that directly or indirectly owns or controls the referenced party, that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
Yes, according to the 2024 Crisp & Green Franchise Disclosure Document, franchisees are required to truthfully complete the Franchisee Acknowledgment, which is included as Exhibit F to the franchise agreement. This acknowledgment aims to confirm that no unauthorized or misleading statements were made to the franchisee during the franchise sales process and to ensure the franchisee understands the limitations on potential claims related to the franchise. However, Exhibit F explicitly states that it should not be signed, and will not apply, if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
The Franchisee Acknowledgment serves as a tool for Crisp & Green to verify that prospective franchisees have received accurate information and understand the terms and conditions of the franchise agreement. By requiring honest responses to the questions in the acknowledgment, Crisp & Green seeks to mitigate potential disputes or misunderstandings that may arise later in the franchise relationship. This process is designed to protect both the franchisor and the franchisee by ensuring transparency and informed consent.
It is important to note that if the franchisee is an entity, an officer and each principal owner must execute the Franchisee Acknowledgment. However, the document includes a disclaimer specifying that it should not be signed if the franchise is to be operated in, or the franchisee is a resident of, Maryland. This addendum reflects specific legal considerations within those states, where certain waivers or disclaimers of reliance may not be enforceable under state franchise laws.
Prospective Crisp & Green franchisees should carefully review Exhibit F and understand its implications before signing, ensuring they are not residents of or operating in the excluded states. Franchisees should also be prepared to answer all questions truthfully and accurately, as this acknowledgment can have legal ramifications regarding future claims or disputes.