Does Crisp & Green have the right to approve or deny a proposed site for each Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Area Development Agreement: Before you open your Franchised Restaurant:
- (1) We will approve or deny your proposed site for each Franchised Restaurant. (Area Development Agreement Section 3.B.3).
- (2) We will use reasonable efforts to help analyze your market area, to help determine site feasibility, and to assist in designating the location as we deem appropriate. (Area Development Agreement Section 3.B.3).
Post-Opening Assistance
Under the Franchise Agreement:
You will be required to locate a site that you believe is acceptable for your Franchised Restaurant and provide us with all information we require relating to the proposed site. We will have 30 days after we receive all of the information we require to notify you whether the site is approved. Unless we provide our specific approval, a proposed site is deemed not approved. If we cannot agree on a proposed site, we may elect to terminate that Franchise Agreement and retain the entire initial franchise fee.
We will evaluate each proposed site based on the market area, population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics. In general, we believe that ideal sites for Restaurants are between 2,000 – 2,500 square feet, are located in an upscale urban or suburban multi-tenant development, are located on a building end-cap, have a patio, and have plentiful free parking spaces. However, we evaluate sites on a case by case basis and sites that are suitable for Restaurants may not necessarily have all of these characteristics. Once we have approved a site, it is your responsibility to conform the premises to local ordinances and building codes, and to obtain any required permits.
Under the Franchise Agreement and Area Development Agreement, we will be deemed to have disapproved a proposed location unless we have expressly approved it in writing. Under the Franchise Agreement and Area Development Agreement, our approval of a site indicates only that we believe the site meets our then-applicable criteria. Applying criteria that have appeared to be effective with other sites does
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–44)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Crisp & Green has the right to approve or deny a proposed site for each Franchised Restaurant. Before a franchisee opens a restaurant under the Area Development Agreement, Crisp & Green will approve or deny the proposed site.
Under the Franchise Agreement, the franchisee is required to locate a site they believe is acceptable and provide all necessary information to Crisp & Green. Crisp & Green then has 30 days to notify the franchisee of their decision. A proposed site is considered not approved unless Crisp & Green provides specific approval in writing. If Crisp & Green and the franchisee cannot agree on a site, Crisp & Green can terminate the Franchise Agreement and retain the initial franchise fee.
Crisp & Green evaluates proposed sites based on factors such as market area, population density, visibility, traffic flow, competition, accessibility, parking, and size. While they generally prefer sites between 2,000 and 2,500 square feet in upscale urban or suburban areas with a patio and ample parking, they evaluate sites on a case-by-case basis. The approval of a site only indicates that Crisp & Green believes it meets their criteria, and they are not responsible if an approved site does not meet the franchisee's expectations.