What agreement must each owner of an entity franchisee sign for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an entity, each owner (i.e., each person holding an ownership interest in you) must sign an Owners Agreement guarantying the obligations of the entity in the form of which is attached to the Franchise Agreement as Attachment C. We also require that the spouses of the Franchise owners sign the Owners Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 46–47)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, if the franchisee is an entity, each owner must sign an Owners Agreement. This agreement guarantees the obligations of the entity. The Owners Agreement form is attached to the Franchise Agreement as Attachment C. Crepe De Licious also requires that the spouses of the Franchise owners sign the Owners Agreement.
This requirement ensures that Crepe De Licious has recourse to the personal assets of the owners should the entity default on its obligations under the Franchise Agreement. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.
Prospective franchisees should carefully review the Owners Agreement to understand the full extent of their personal liability. They should also discuss the agreement with their legal and financial advisors to ensure they are comfortable with the terms.