Within how many months after the date of the Franchise Agreement must I open my Crisp & Green restaurant?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchised Restaurant.
You must open the Franchised Restaurant in compliance with our standards within nine months after the date of your Franchise Agreement. If you have signed an Area Development Agreement, you must open your first Franchised Restaurant in compliance with our standards within nine months after the date of your first Franchise Agreement and each of your subsequent Franchised Restaurants in compliance with our standards according to the opening deadlines set forth in the Area Development Agreement you will sign at the same time you sign your first Franchise Agreement.
Your obligation to complete construction of the Franchised Restaurant includes obtaining all required construction and occupancy licenses and permits, developing the premises (including all outdoor features and landscaping of the premises), installing all required fixtures, furnishings, equipment and signs, and doing all other things required by the Franchise Agreement or by practical necessity to have the Franchised Restaurant ready to open for business by the required opening date. You must give us at least 30 days' prior notice of the date on which you plan to open the Franchised Restaurant. You may not open the Franchised Restaurant for business until we have notified you that the Franchised Restaurant meets our requirements for opening, including payment in full of the initial franchise fee and all other amounts then owing to us, successful completion of Crisp Academy, and our receipt of your certificates of insurance.
We may, but are not obligated to, grant you extensions of any opening deadlines if we determine, in our sole discretion, that you are expending good faith best efforts to complete site development and the opening process and pay a fee for the extension of up to $5,000.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–31)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, a franchisee must open their restaurant within nine months after the date of the Franchise Agreement. For franchisees who sign an Area Development Agreement, the first restaurant must open within nine months of the initial Franchise Agreement, with subsequent restaurants adhering to the opening deadlines specified in the Area Development Agreement.
Crisp & Green may grant extensions to these opening deadlines if the franchisee is making a good faith effort to complete the site development and opening process, but the franchisee will have to pay a fee for the extension of up to $5,000. If a franchisee fails to open their restaurant within the stipulated timeframe and has not obtained an extension, they will be required to pay a Minimum Royalty Fee of $7,500, plus 7% of their Gross Sales (if any), for each month until the restaurant is open and compliant with Crisp & Green's standards. This fee is prorated for partial months.
Furthermore, Crisp & Green retains the right to terminate the Franchise Agreement if the restaurant does not open by the required date, unless an extension has been approved. To ensure a smooth opening, the franchisee must provide Crisp & Green with at least 30 days' notice of their planned opening date. The restaurant cannot open for business until Crisp & Green confirms that it meets all opening requirements. These requirements include full payment of the initial franchise fee and any other outstanding amounts, successful completion of Crisp Academy, and receipt of the franchisee's insurance certificates.