Who is responsible for the costs associated with using a broker to identify a location for a Crisp & Green franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the franchisee is responsible for any costs associated with using a broker to identify a location for their franchise. While Crisp & Green must approve the location, the responsibility for finding a suitable site within the designated area falls on the franchisee.
This means that if a prospective Crisp & Green franchisee chooses to engage a broker to assist in the site selection process, they will be the one incurring the broker's fees. This is a fairly standard practice in franchising, as the franchisee typically bears the costs of setting up their specific location.
However, Crisp & Green does retain some control over the site selection. The franchisor states that they will designate a preliminary area and the franchisee will be responsible for identifying a site within that area that meets their approval. Crisp & Green also states that they will not unreasonably withhold approval of a site that meets their 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.