What is the waiting period following receipt of the Crisp & Green disclosure document before signing the LOI?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
elopment Agreement. After you apply to become a franchisee (for a single Restaurant or for multiple Restaurants under an Area Development Agreement) and after the expiration of the 14-day waiting period following your receipt of this disclosure document, you will be required to sign a letter of intent (the "LOI") to evidence your intention to continue towards execution of one or more Franchise Agreements with us. In connection with the LOI you will be required to submit to a background check which includes a criminal/civil record search and a credit
check. We will not countersign a Franchise Agreement or Area Development Agreement until we have received results of the search and check. If we determine that you are unsuitable to run a franchised Restaurant as a result of background check and credit check results, we reserve the right to not accept you as a franchisee and to terminate any agreements between us and you. An example of the LOI for a single territory is attached as Exhibit D to this disclosure document.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–26)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, after applying to become a franchisee, whether for a single restaurant or multiple restaurants under an Area Development Agreement, there is a mandatory 14-day waiting period following receipt of the disclosure document. After this period, prospective franchisees are required to sign a letter of intent (LOI) to show their commitment to potentially entering into one or more Franchise Agreements with Crisp & Green.
In conjunction with signing the LOI, the prospective franchisee must consent to a background check. This check includes a review of criminal and civil records, as well as a credit check. Crisp & Green will not finalize any Franchise Agreement or Area Development Agreement until the results of these checks are received and reviewed.
Crisp & Green retains the right to reject a potential franchisee based on the findings of the background and credit checks. If the results indicate that the applicant is unsuitable to manage a franchised restaurant, Crisp & Green may terminate any existing agreements with the applicant and decline to move forward with the franchising process. An example of the LOI for a single territory is included as Exhibit D to the disclosure document.