Does the restriction on transfer in the Crisp & Green Franchise Agreement apply to the transfer of interest in a previously signed Franchise Agreement for a Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- The restriction on Transfer contained in this Agreement does not apply to, or otherwise restrict, your right to transfer any interest in any Franchise Agreement you previously signed for any Franchised Restaurant to be developed under this Agreement. You may transfer those agreements apart from any rights you have in this Agreement, provided you comply with the transfer provisions of each agreement you seek to transfer.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the transfer restrictions outlined in the Development Agreement do not apply to the transfer of interest in a previously signed Franchise Agreement for a Franchised Restaurant. A Crisp & Green developer has the right to transfer any interest in any Franchise Agreement they previously signed for a Franchised Restaurant to be developed under the Development Agreement.
However, this right is conditional. The developer must still comply with the transfer provisions of each individual Franchise Agreement they seek to transfer. This means that while the Development Agreement's transfer restrictions don't apply, the specific requirements and conditions for transfer outlined in each Franchise Agreement must be met.
This provision offers flexibility to Crisp & Green developers, allowing them to manage their franchise agreements independently of the broader Development Agreement, provided they adhere to the specific transfer terms within each individual franchise agreement. This could be beneficial if a developer wants to sell off a single restaurant location without affecting their overall development agreement.