Under what conditions can Crisp & Green change the System?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
D. You acknowledge and agree that other than as set forth in Section C above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by Crisp & Green Restaurants, and the operation or franchising of Crisp & Green Restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Development Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants physically located outside the Development Area, on such terms and conditions as we deem appropriate (you acknowledge that such Crisp & Green Restaurants may be in direct competition with your Franchised Restaurant(s), without regard to any adverse effects of such activities on your Franchised Restaurant(s) and without any obligation or liability to you), which includes the right of us and others to perform Catering Services or Delivery Services in your Development Area; (b) to establish and operate, and grant to others the right to operate, Crisp & Green Restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Development Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and physical outlets like kiosks, convenience stores or supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the Crisp & Green name and mark), pursuant to such terms and conditions as we deem appropriate and wherever such restaurants are located, which restaurants may be located within the Development Area; (e) to acquire the assets or ownership interests of one or more businesses providing products and services similar or dissimilar to those
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green retains all rights and discretion with respect to the System. This means Crisp & Green has broad authority to make changes to the System as they see fit.
Specifically, Crisp & Green can establish and operate restaurants, or grant others the right to operate restaurants, that use any part or all of the System and/or Marks, located at or operated from Non-Traditional Sites within or outside the Development Area. They can also sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating, including the internet, kiosks, convenience stores, or supermarkets.
Crisp & Green also has the right to establish and operate restaurants identified by trademarks, service marks, or trade dress other than the Crisp & Green Marks, under terms and conditions they deem appropriate, even within the Development Area. Furthermore, Crisp & Green can acquire businesses providing similar or dissimilar products and services and franchise, license, or create similar arrangements with respect to these acquired businesses, potentially converting them to Crisp & Green restaurants using the Marks and/or the System, even within a franchisee's Development Area. They can also be acquired by a business providing similar products and services, even if that business operates Competitive Businesses in the Development Area.
This broad reservation of rights means that a Crisp & Green franchisee's business could be impacted by changes to the System, new channels of distribution, or even the introduction of competing concepts, with little recourse. Prospective franchisees should carefully consider this broad discretion and its potential impact on their investment.