Under the Crisp & Green Area Development Agreement, what is the 'Development Schedule'?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
If you enter into an Area Development Agreement, you will receive the right to develop and operate Franchised Restaurants in an agreed upon specified geographic area. The number of locations you must open in a particular area will vary depending on the area. We will negotiate this number with you. We will designate the area at the time you sign your Area Development Agreement. This area is referred to in your Area Development Agreement as the "Development Area." The deadlines by which you must sign each franchise agreement and open each Franchised Restaurant (the "Development Schedule") will be designated in the Area Development Agreement.
As long as your Area Development Agreement is in effect, and you are not in default under the Area Development Agreement or any other agreement with us, then except as described below we will not grant to anyone else a franchise to operate, and we will not operate, a CRISP & GREEN Restaurant physically located in your Development Area prior to the earlier of (i) the expiration or termination of the Area Development Agreement, and (ii) the date on which you must sign the franchise agreement for your last Franchised Restaurant according to the Development Schedule. This is the only restriction on us in
your Development Area. Additionally, we can exercise any of the rights in your Development Area that are discussed below for a Designated Area.
If you fail to meet the Development Schedule or otherwise breach your Area Development Agreement, you will lose your right to continue to develop Franchised Restaurants in your Development Area. The Area Development Agreement does not grant any options, rights of first refusal, or similar rights to you to acquire additional development rights in the Development Area or contiguous areas. You do not have the right to change your Development Area. If the Development Area covers more than one city, county, or designated market area, the protection for each particular city, county or designated market area will also expire on the date when we determine the designated area to be given to you under a franchise agreement for your final Franchised Restaurant to be developed in that city, county, or designated market area
Source: Item 12 — TERRITORY (FDD pages 44–47)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Development Schedule outlines the deadlines by which an area developer must sign each franchise agreement and open each Crisp & Green restaurant within their designated area. The specific deadlines are established within the Area Development Agreement itself and are subject to negotiation between the developer and Crisp & Green.
For a prospective Crisp & Green area developer, understanding the Development Schedule is crucial. Failing to meet these deadlines or otherwise breaching the Area Development Agreement can result in the loss of the right to continue developing Crisp & Green restaurants in the designated area. This highlights the importance of carefully assessing one's capabilities and resources before committing to a Development Schedule.
Unlike a standard franchise agreement, the Area Development Agreement does not grant any options or rights of first refusal to acquire additional development rights in the Development Area or adjacent areas. Furthermore, the developer cannot change the Development Area once it is established. If the Development Area spans multiple cities, counties, or designated market areas, the protection for each of those sub-areas expires when Crisp & Green determines that the designated area is given to you under a franchise agreement for your final Franchised Restaurant to be developed in that city, county, or designated market area. This means that the developer's exclusive rights in a particular sub-area are tied to the progress of development within that specific location.
In summary, the Development Schedule is a critical component of the Area Development Agreement, setting forth the timeline for opening multiple Crisp & Green locations. Prospective developers should carefully consider the implications of the Development Schedule and ensure they have the resources and capabilities to meet the agreed-upon deadlines. They should also be aware that failure to comply with the Development Schedule can result in the loss of development rights.