What assets of a Crepe De Licious franchise does Crepe De Licious have the right to purchase upon termination or expiration?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.11 Right to Purchase. Upon the expiration or termination of this Agreement by any means or for any reason, we will have the right, but not the obligation, to purchase some or all of the assets of the Franchised Business, including any furnishings, fixtures, equipment, signs, items, inventory, supplies and marketing materials, as well as all items bearing any Mark, at the lesser of your cost or fair market value.
Before exercising any rights under this Section 17.11, we will have the right to enter the Restaurant, Kiosk, or Food Truck during reasonable hours to inspect the assets.
If we elect to exercise our purchase rights, we will give you written notice of intent to do so within 30 days after termination or expiration of this Agreement.
In the event of such a purchase, there shall be no payment by us for any intangible assets of the Franchised Business.
If the parties cannot agree on fair market value within 15 days after we provide notice of intent to purchase, then each party will select an independent appraiser.
The two (2) appraisers will then have up to 15 business days to agree on a fair market value for the relevant assets.
If they cannot agree during that period, then the final fair market value will be determined by averaging the amounts determined by the two (2) appraisers.
If we elect to exercise our purchase rights, closing will take place within 45 days after we provide notice of intent to purchase, to the extent reasonably possible.
We will have the right to offset all amounts you owe to us or our affiliates against any payment due to you under this Section 17.11.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, Crepe De Licious has the right, but not the obligation, to purchase some or all of the assets of the franchised business. These assets include furnishings, fixtures, equipment, signs, inventory, supplies, and marketing materials, as well as all items bearing any of Crepe De Licious's marks. The purchase price will be the lesser of the franchisee's cost or the fair market value of the assets.
Before exercising this purchase right, Crepe De Licious has the right to inspect the assets by entering the Restaurant, Kiosk, or Food Truck during reasonable hours. If Crepe De Licious decides to purchase the assets, it must provide written notice of its intent within 30 days after the termination or expiration of the Franchise Agreement.
In the event of a purchase, Crepe De Licious will not pay for any intangible assets of the franchised business. If the parties cannot agree on the fair market value of the assets within 15 days after Crepe De Licious provides notice of intent to purchase, each party will select an independent appraiser. The two appraisers will then have up to 15 business days to agree on a fair market value. If they cannot agree, the final fair market value will be determined by averaging the amounts determined by the two appraisers. Closing will take place within 45 days after Crepe De Licious provides notice of intent to purchase, to the extent reasonably possible. Crepe De Licious has the right to offset any amounts the franchisee owes to Crepe De Licious or its affiliates against any payment due to the franchisee for the assets.