Upon termination or expiration of the Crisp & Green Development Agreement, what happens to the remaining rights granted to the franchisee to develop Franchised Restaurants?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
erritory described in the Rider (the "Development Area").
- B. You agree to be bound by the "Development Schedule" set forth in the Rider. Time is of the essence for the development of each Franchised Restaurant under this Agreement and for the signing of each Franchise Agreement as set forth in the Development Schedule. Each Franchised Restaurant must be developed and operated by you under a separate Franchise Agreement that you enter into with us.
- C. Unless otherwise indicated in the Rider and except as set forth in Section D below or otherwise in this Agreement, if you are in compliance with this Agreement and any and all Franchise Agreement(s) you have with us, we will not develop or operate—or grant anyone else a franchise to develop and operate—a CRISP & GREEN Restaurant from any location
in the Development Area before the earlier of: (i) the expiration or termination of this Agreement; and (ii) the date on which you must sign the Franchise Agreement for your last Franchised Restaurant under the terms of the Development Schedule. Notwithstanding anything in this Agreement, when the earliest of the above events occurs: (i) the Development Area will expire; and (ii) we will be entitled to develop and operate—or to franchise others to develop and operate—CRISP & GREEN Restaurants from locations in the Development Area, except as may be otherwise provided under any Franchise Agreement that has been signed between us and you and that has not been terminated.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the rights to develop and operate Crisp & Green restaurants in the Development Area expire upon the earliest of the termination or expiration of the Development Agreement, or the date on which the franchisee must sign the Franchise Agreement for their last restaurant under the Development Schedule. After any of these events, Crisp & Green is entitled to develop and operate, or franchise others to develop and operate, Crisp & Green restaurants from locations in the Development Area. This is with the exception of any provisions under a signed and un-terminated Franchise Agreement between Crisp & Green and the franchisee.
If the franchisee fails to comply with the Development Schedule, Crisp & Green may choose to replace any portion of the Development Area not already under a fully executed Franchise Agreement with new territory. This occurs when the franchisee demonstrates the intent and ability to execute the next Franchise Agreement required by the Development Schedule. This means a franchisee could lose the rights to develop in certain areas if they are not meeting the agreed-upon development timeline.
Any provisions of the Development Agreement that, by their nature, are meant to be performed after the agreement's expiration or termination will remain in effect. This could include clauses related to non-compete, confidentiality, or other obligations. Therefore, even after the Development Agreement ends, certain responsibilities and restrictions may still apply to the franchisee.