Does Crisp & Green have the right to operate restaurants outside of a franchisee's Designated Area?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
- Establish and operate, or authorize others to establish and operate, Restaurants physically located at Non-Traditional Sites, whether or not within your Designated Area or Development Area, on any terms and conditions we deem appropriate;
- Establish and operate, or authorize others to establish and operate, Restaurants physically located outside of your Designated Area and Development Area on any terms and conditions we deem appropriate;
- Sell delivery and catering services, and authorize others to sell delivery and catering services, into your Designated Area and Development Area, on any terms and conditions we deem appropriate;
- Use other channels of distribution, such as the internet, grocery stores, convenience stores, kiosks, telemarketing, newspapers, or other direct marketing sales channels, to sell products and services to customers located in any place (inside or outside your Designated Area or
Development Area) using the Marks and other trademarks and service marks associated with Restaurants, or using any other trademarks, servicemarks, and other source identifiers, and authorize any other person to do any of the foregoing;
- Own and operate businesses that offer salads, grain bowls, smoothies and other healthy items, and/or related services and products that we purchase (or as to which we purchase the rights as franchisor) that are part of another franchise system or chain, and either continue to operate them independently, or convert them to businesses or franchises under the Marks, even if they are located within your Designated Area or Development Area;
- Establish and operate, or grant others the right to operate, other restaurants not identified with the CRISP & GREEN Marks (even those that offer products or services that may compete with the products or services sold in your Franchised Restaurant) in any location, including within your Designated Area or Development Area;
- Acquire the assets or ownership interests in one or more businesses and convert such businesses into Restaurants wherever they are located, including within your Designated Area or Development Area;
- Be acquired by a business providing products and services similar to those provided at Restaurants or by another business, even if the acquiring business operates, franchises, or licenses restaurants that are competitive with your Franchised Restaurant in your Designated Area or Development Area; and
- Engage in all other activities that the Franchise Agreement and Area Development Agreement do not expressly prohibit.
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green retains significant rights to operate or authorize others to operate restaurants outside of a franchisee's designated area. Specifically, Crisp & Green can establish restaurants at non-traditional sites, such as military bases, shopping malls, airports, and college campuses, regardless of whether these sites are within a franchisee's designated area. They can also establish restaurants outside of a franchisee's designated or development area. This means a franchisee's territory is not exclusive, and Crisp & Green can compete within or near that territory through these alternative channels.
Furthermore, Crisp & Green reserves the right to sell delivery and catering services, or authorize others to do so, within a franchisee's designated area. They can also use various distribution channels like the internet, grocery stores, and direct marketing to sell products and services to customers inside or outside the designated area. Additionally, Crisp & Green can own and operate businesses offering similar products, even within a franchisee's territory, and may even convert these businesses into Crisp & Green franchises.
These provisions highlight the non-exclusive nature of a Crisp & Green franchise territory. A franchisee may face competition from other franchisees, company-owned outlets, alternative distribution channels, or even competitive brands controlled by Crisp & Green. The FDD explicitly states that Crisp & Green does not have to compensate a franchisee if they solicit or accept orders from within the franchisee's designated area or development area.
Prospective franchisees should carefully consider these factors and understand that their designated area does not guarantee exclusive rights. The ability of Crisp & Green to operate or authorize competing outlets and channels within or near a franchisee's territory could impact the franchisee's potential revenue and market share. It is important to assess the potential for such competition in the specific location being considered for a franchise.