Under what circumstances might Crisp & Green not allow an Approved Operator other than the Operating Partner?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
who has completed our required training programs.
If you will operate multiple Franchised Restaurants pursuant to an Area Development Agreement, you must designate an operator who will be responsible for the day-to-day development and operations of multiple Franchised Restaurants (an "Approved Operator"). Unless we otherwise approve, your Operating Partner will be your Approved Operator. All approvals are given in our sole discretion, and we do not guarantee that you will be allowed to have an Approved Operator other than your Operating Partner. Your Approved Operator must meet qualification standards that we establish from time to time, must exert his or her full-time best efforts to the development and operations of your multiple locations, and must attend and complete Crisp Academy and all other training programs that we require from time to time. Your Approved Operator will be responsible for, among other things, supervising the General Managers of each of your Franchised Restaurants, meeting all development opening deadlines, and ensuring your Franchised Restaurants are operating in a uniform and efficient manner and complying with our Standards. If your Approved Operator is other than your Operating Partner, your Approved Operator must be your employee
subject to your supervision and direction. The Approved Operator must have the authority to make operational decisions affecting your Franchised Restaurants, and may not engage in any other business activity, directly or indirectly, that requires substantial management responsibility or time commitments or that otherwise interferes with his or her role as your Approved Operator.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 50–51)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee intends to operate multiple franchised restaurants under an Area Development Agreement, they must designate an Approved Operator responsible for the development and operations of these locations. Generally, Crisp & Green expects the Operating Partner to also serve as the Approved Operator.
However, Crisp & Green may approve another person to be the Approved Operator, but this is not guaranteed. The approval of an Approved Operator other than the Operating Partner is at Crisp & Green's sole discretion. The prospective franchisee should discuss with Crisp & Green what specific criteria or conditions would need to be met for them to approve an alternate Approved Operator.
The Approved Operator, whether it's the Operating Partner or another approved individual, must meet Crisp & Green's qualification standards, dedicate their full-time efforts to the development and operations, and complete Crisp Academy and other required training programs. If the Approved Operator is someone other than the Operating Partner, they must be the franchisee's employee, subject to their supervision, and have the authority to make operational decisions. They also cannot engage in other business activities that interfere with their role as Approved Operator.