Under what conditions can Crisp & Green terminate the franchise agreement or area development agreement for breach, failure to meet performance standards, or failure to make royalty or advertising payments?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
We may not terminate the franchise agreement or area development agreement for a breach, for failure to meet performance standards and/or for failure to make royalty or advertising payments unless you receive 30 days prior written notice from us, and you are provided with an opportunity to cure the defaults.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, the franchise agreement or area development agreement can be terminated for breach, failure to meet performance standards, or failure to make royalty or advertising payments, but only under specific conditions in South Dakota.
Specifically, Crisp & Green must provide the franchisee with 30 days prior written notice and an opportunity to cure the defaults before terminating the agreement. This requirement is outlined in an addendum to the Franchise Disclosure Document that applies to franchises offered and sold in South Dakota.
This stipulation ensures that franchisees in South Dakota are given a fair chance to rectify any issues before Crisp & Green can proceed with termination, providing a safeguard against immediate or unexpected franchise termination. This type of clause is not uncommon in franchise agreements, as many states have franchise laws designed to protect franchisees from unfair termination practices.