Under what conditions may Crisp & Green grant an extension of the deadline for opening a Franchised Restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
fied training and support for your opening.
We may, but are not obligated to, grant you an extension of the deadline for opening your Franchised Restaurant if we determine, in our sole discretion, that you are expending good faith best efforts to complete each phase of the site development and opening process and pay a fee for the extension of up to $5,000. However, in the event your Franchised Restaurant is not open and operating by the required opening date, you will be required to pay us a minimum royalty payment of $7,500 per month, plus 7% of any Gross Sales you receive, for each month until your Franchised Restaurant opens (pro-rated for partial months). Additionally, if the Franchised Restaurant does not open for operation in compliance with our standards by the required opening date, unless you have received an approved extensio
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–44)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, an extension of the deadline for opening a franchised restaurant may be granted if Crisp & Green determines, in its sole discretion, that the franchisee is expending good faith best efforts to complete each phase of the site development and opening process. The franchisee must also pay a fee for the extension, up to $5,000.
However, if the franchised restaurant is not open and operating by the required opening date, the franchisee will be required to pay Crisp & Green a minimum royalty payment of $7,500 per month, plus 7% of any Gross Sales received, for each month until the restaurant opens, with payments pro-rated for partial months.
Furthermore, if the franchised restaurant does not open for operation in compliance with Crisp & Green's standards by the required opening date, and without an approved extension, Crisp & Green may terminate the Franchise Agreement. This highlights the importance of adhering to the opening timeline and communicating proactively with Crisp & Green regarding any potential delays.