Under what circumstances would a Crisp & Green franchisee be required to pay a Securities Offering fee?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Securities Offering | Our actual expenses | Upon demand | Payable only if you propose to engage in a public or private securities offering, to reimburse us for our reasonable costs and expenses (including legal and accounting fees) to evaluate your proposed offering. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee may incur a Securities Offering fee. This fee is applicable if the franchisee proposes to engage in either a public or private securities offering.
The purpose of the Securities Offering fee is to reimburse Crisp & Green for the expenses they incur while evaluating the franchisee's proposed offering. These expenses include reasonable costs related to legal and accounting services. The franchisee is responsible for covering these actual expenses.
The Securities Offering fee is due upon demand from Crisp & Green. This means that the franchisee will need to be prepared to pay this fee when Crisp & Green requests reimbursement for their evaluation costs. This fee is not a standard fee, but rather a conditional one that arises only if the franchisee seeks to raise capital through a securities offering and requires Crisp & Green to assess the offering's implications.