factual

Upon termination or expiration of the Crisp & Green Franchise Agreement, what must a franchisee refrain from using?

Crisp_Green Franchise · 2024 FDD

Answer from 2024 FDD Document

Upon the expiration or other termination for any reason of my employment, association, service or ownership participation, I agree: (1) to return immediately to Franchisor or Franchisee, as the case may be, all Confidential Information, and any material(s) containing a subset thereof, in my possession that was utilized, or to which I had access, during my employment, association, service or ownership participation; (2) to refrain, beginning upon such expiration or termination and forever thereafter, from any and all contacts with customers of Restaurants for any purpose whatsoever; and (3) for a period of two (2) years, starting on the effective date of termination or expiration of my employment/service/association or ownership participation, to refrain from directly or indirectly (such as through any one or more of my spouse, domestic partner, parents, children or sibling(s) (collectively, "Immediate Family")) owning a legal or beneficial interest in, or rendering services or giving advice to: (a) any Competitive Business operating at the Premises or within a fifteen (15)-mile radius of the Premises; (b) any Competitive Business operating within a radius of fifteen (15) miles of any Restaurant in operation or under construction on the effective date of termination or expiration of my employment/service/association/ownership participation; or (c) any entity which grants franchises, licenses or other interests to others to operate any Competitive Business. In the event the Premises is located in a metropolitan area having a population of more than 100,000 persons within a ten (10)-mile radius of the Premises, the foregoing fifteen (15)-mile radius restriction will be limited to a radius of ten (10) miles from any Restaurant (including the one formerly operated under this Agreement). I acknowledge and understand that the provisions of this Agreement, including my representations, covenants, and warranties (as applicable) given hereunder, are necessary and integral to this Agreement and to Franchisor's and Franchisee's interests under the Franchise Agreement, and are intended to:

(i) preclude not only direct competition, but also all forms of indirect competition, such as consultation for Competitive Businesses, service as an independent contractor for Competitive

Source: Item 23 — RECEIPTS (FDD pages 66–252)

What This Means (2024 FDD)

According to Crisp & Green's 2024 Franchise Disclosure Document, if a franchisee's employment, association, service, or ownership participation ends, they must adhere to specific restrictions. The franchisee must immediately return all Confidential Information and materials containing it to Crisp & Green. Furthermore, the franchisee is prohibited from contacting any Crisp & Green restaurant customers for any reason, starting immediately after the termination or expiration.

Additionally, for two years following the termination or expiration date, the franchisee is restricted from direct or indirect involvement with any Competitive Business. This includes owning a legal or beneficial interest in, rendering services to, or advising a Competitive Business. This restriction applies to businesses operating at the former Crisp & Green location or within a 15-mile radius of any Crisp & Green restaurant in operation or under construction.

However, if the Crisp & Green location was in a metropolitan area with a population exceeding 100,000 within a 10-mile radius, the radius restriction is reduced to 10 miles from any Crisp & Green restaurant. The FDD specifies that these restrictions are crucial to protect Crisp & Green's interests and prevent both direct and indirect competition, such as consulting for competitors or sharing information that could aid them.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.