Who is responsible for the development expenses of the Crisp & Green Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
t our prior approval.
You are responsible for developing the Franchised Restaurant at your expense. It is your responsibility to prepare all required construction and remodeling plans and specifications to suit the Restaurant and to make sure that they comply with federal, state, or local laws and regulations, including the Americans with Disabilities Act (the "ADA") and similar rules governing public accommodations for persons with disabilities, other applicable ordinances, building codes, permit requirements, and lease requirements and restrictions. You must submit all site surveys, construction and remodeling plans, and specifications to us for our approval before beginning build-out for the Franchised Restaurant and all revised or "as built" plans and specifications during construction and development. You must obtain a site survey from one of our approved vendors. We have a required architectural vendor who you must use for the creation of the architectural plans for your Franchised Restaurant.
You must open the Franchised Restaurant in compliance with our standards within nine months after the date of your Franchise Agreement. If you have signed an Area Development Agreement, you must open your first Franchised Restaurant in compliance with our standards within nine months after the date of your first Franchise Agreement and each of your subsequent Franchised Restaurants in compliance with our standards according to the opening deadlines set forth in the Area Development Agreement you will sign at the same time you sign your first Franchise Agreement.
Your obligation to complete construction of the Franchised Restaurant includes obtaining all required construction and occupancy licenses and permits, developing the premises (including all outdoor features and landscaping of the premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things required by the Franchise Agreement or by practical necessity to have the Franchised Restaurant ready to open for business by the required opening date. You must give us at least 30 days' prior notice of the date on which you plan to open the Franchised Restaurant.
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 all development expenses related to their franchised restaurant. This includes preparing all construction and remodeling plans to comply with federal, state, and local laws, including the Americans with Disabilities Act. Franchisees must also submit these plans to Crisp & Green for approval before starting any construction.
This means a prospective Crisp & Green franchisee needs to be prepared to cover all costs associated with building out the restaurant location. These costs encompass site surveys, architectural plans (using Crisp & Green's required architectural vendor), obtaining necessary licenses and permits, developing the premises (including outdoor features and landscaping), and installing all required fixtures, furnishings, equipment, and signs. The franchisee is responsible for ensuring the restaurant is ready to open for business by the required opening date.
Furthermore, the franchisee's obligations extend to potential future costs. Crisp & Green may periodically require franchisees to alter the restaurant's appearance, branding, layout, or design, or replace a material portion of the furniture, fixtures, and equipment to meet current standards for new restaurants. The franchisee must bear the costs associated with these upgrades or remodels, which Crisp & Green will not require more than once during any five-year period.
In summary, a Crisp & Green franchisee should anticipate significant upfront and ongoing investment in the physical development and maintenance of the restaurant location, as these costs are their sole responsibility.