Does Crisp & Green specify what constitutes 'due diligence' in the context of a franchisee's maintenance program?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
If at any time the general state of repair, appearance or cleanliness of the Franchised Restaurant or its fixtures, equipment, furniture, signs or utensils, does not meet our standards, we may notify you and specify the action you must take to correct such deficiency. If, within ten (10) days after receiving such notice, you fail or refuse to initiate and thereafter continue in good faith and with due diligence a bona fide program to complete such required maintenance, we have the right (in addition to our rights under Section 14), but not the obligation, to enter the Premises and do such maintenance on your behalf and at your expense. You must
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the term 'due diligence' is used in the context of a franchisee's maintenance program. Specifically, if the general state of repair, appearance, or cleanliness of the Franchised Restaurant does not meet Crisp & Green's standards, they may notify the franchisee and specify the required corrective actions.
If, within ten days after receiving such notice, the franchisee fails or refuses to initiate and continue in good faith and with due diligence a program to complete the required maintenance, Crisp & Green has the right, but not the obligation, to enter the premises and perform the maintenance on behalf of the franchisee and at the franchisee's expense. The franchisee must promptly reimburse Crisp & Green for these expenses, which may be automatically debited from the franchisee's bank account.
In this context, 'due diligence' means that after being notified of maintenance deficiencies, the franchisee must start a bona fide program to complete the required maintenance within ten days and continue that program in good faith until the maintenance is finished. This implies that the franchisee must take reasonable and consistent steps to address the issues raised by Crisp & Green to avoid the franchisor stepping in to manage the maintenance themselves at the franchisee's expense.