What is the typical radius of the Designated Area granted to a Crisp & Green franchisee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Once the site for your Franchised Restaurant has been approved by us and added to the Franchise Agreement as the premises, we will define your "Designated Area" in Exhibit B to the Franchise Agreement. Your Designated Area will generally consist of a one- to three-mile radius around the site of your Franchised Restaurant (although this may be less in densely populated areas) and will be illustrated on a map. The size and shape of your Designated Area will be based on our current criteria for size, demographics, and topological features.
As long as you are in compliance with the Franchise Agreement and all other agreements between you and your affiliates, on the one hand, and us or one or more of our affiliates, on the other hand, we will not operate (directly or through an affiliate), or grant a third party the right to operate, a Restaurant within your Designated Area (other than at Non-Traditional Sites, as defined below) during the term of the Franchise Agreement. Other than as described in the immediately preceding sentence, your rights under the Franchise Agreement and Area Development Agreement are non-exclusive, meaning that our and our affiliates' activities are unrestricted. By way of example and without limitation, we and our affiliates are permitted, and we specifically reserve the right, to:
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee's Designated Area typically consists of a one- to three-mile radius around the location of their Franchised Restaurant. This area is defined in Exhibit B of the Franchise Agreement and illustrated on a map. However, the FDD specifies that this radius may be smaller in densely populated areas, indicating that the size of the Designated Area is not fixed and can vary based on local demographics and topological features. This flexibility allows Crisp & Green to tailor the territory size to the specific characteristics of each location.
It is important to note that while Crisp & Green will not operate or grant a third party the right to operate a Restaurant within the Designated Area during the term of the Franchise Agreement, this protection does not extend to Non-Traditional Sites. These sites, which include locations like military bases, shopping malls, airports, and college campuses, are excluded from the Designated Area. This means that Crisp & Green reserves the right to establish or authorize other restaurants at these Non-Traditional Sites, even within a franchisee's Designated Area.
Furthermore, the franchise agreement is non-exclusive, meaning that Crisp & Green and its affiliates have unrestricted rights beyond the specific protection offered within the Designated Area. They can sell delivery and catering services into the Designated Area, use other channels of distribution like the internet, and even operate other restaurant concepts that may compete with the franchisee. Prospective franchisees should carefully consider these factors and evaluate the potential for competition from both within and outside their Designated Area before investing in a Crisp & Green franchise.