Under what circumstances is the Crisp & Green Franchise Agreement Addendum signed?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
This Addendum pertains to franchises sold in the State of New York and is for the purpose of complying with New York statutes and regulations. This Addendum shall be of no force and effect unless the jurisdictional requirements of the New York laws applicable to franchises and any regulations thereunder are met independently without reference to this Addendum.
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- BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement dated
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, an addendum to the franchise agreement is required when a franchise is sold in specific states. For example, there are addenda for New York, Minnesota, North Dakota, Rhode Island, Virginia, and Maryland. These addenda are designed to ensure compliance with the specific statutes and regulations of those states. The addenda are only applicable if the jurisdictional requirements of the respective state's laws are met independently, without relying on the addendum itself.
For New York, the addendum is signed if the franchisee is domiciled in New York, and the franchised restaurant will be located in New York, or if any offering or sales activity related to the franchise agreement occurred in New York. The New York addendum modifies sections of the franchise agreement relating to releases, termination by the franchisee, injunctive relief, and the forum for litigation to comply with New York law.
Similarly, the North Dakota addendum applies if the franchisee is a resident of North Dakota or if the Crisp & Green business will be located in North Dakota. The Virginia and Maryland addenda address specific provisions of those states' franchise laws, ensuring that the franchise agreement complies with local regulations regarding termination, dispute resolution, and franchisee rights. These addenda prevent franchisees from waiving claims under state franchise laws or disclaiming reliance on franchisor statements.