Under what conditions do Sections 13.06 and 13.02(h) or (j) not apply to a Crisp & Green franchise transfer?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Neither Section 13.06 nor Section 13.02(h) or (j) shall apply to any Transfer of the Franchise to any member of your Immediate Family or the Immediate Family of a then current Principal Owner of Franchisee (if you are an Entity).
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, Sections 13.06 and 13.02(h) or (j) of the franchise agreement do not apply when transferring a franchise to certain family members. Specifically, these sections are waived if the transfer is to a member of the franchisee's immediate family or to the immediate family of a principal owner of the franchisee, if the franchisee is a business entity. This provision simplifies the transfer process within the franchisee's family, as it exempts such transfers from certain requirements or restrictions that would otherwise apply.
Section 13.06 likely pertains to Crisp & Green's right of first refusal, which typically allows the franchisor to match any offer the franchisee receives from a third party to purchase the franchise. Section 13.02(h) and (j) likely outline specific conditions related to the transfer, such as the franchisor's approval of the transfer terms and conditions, and requirements related to financing any part of the sale price. By waiving these sections for transfers to immediate family members, Crisp & Green streamlines what could otherwise be a complex and potentially costly process.
For a prospective Crisp & Green franchisee, this means that transferring the franchise to a close family member is made easier, without the typical hurdles of franchisor approval processes or financial stipulations. However, it is important to note that the definition of "immediate family" is not provided in this excerpt and should be clarified with Crisp & Green. This could be a significant benefit for succession planning or if the franchisee wishes to keep the business within the family. It is also important to remember that while these specific sections are waived, other transfer requirements may still apply, and the franchisee should consult the full franchise agreement for complete details.