Who benefits from the provisions of the Crepe De Licious Release?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Crepe de licious business;
WHEREAS, [Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement] or [the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release], and Franchisor has consented to such [transfer/successor franchise agreement/amendment/termination/other reason]; and
WHEREAS, as a condition to Franchisor's consent to [transfer the Agreement/enter into a successor franchise agreement/amend the Agreement/terminate the Agreement/other reason], Releasor has agreed to execute this Release upon the terms and conditions stated below.
NOW, THEREFORE, in consideration of Franchisor's consent, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, Releasor hereby agrees as follows:
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the franchisor, Crepe Delicious Holding USA, Inc., benefits from the provisions within the Release. Specifically, the Release is executed as a condition of the franchisor's consent to a transfer of the franchise agreement, a successor franchise agreement, an amendment to the agreement, or a termination of the agreement. The releasor, in exchange for the franchisor's consent, agrees to the terms and conditions outlined in the Release.
This means that if a franchisee wants to transfer their franchise to someone else, enter into a new franchise agreement, modify their existing agreement, or terminate the agreement altogether, Crepe De Licious requires the releasor to sign the Release. By signing, the releasor agrees to certain terms that protect Crepe De Licious's interests. This ensures that Crepe De Licious maintains control over franchise transfers, amendments, and terminations, and that the franchisor is protected from potential claims or liabilities related to these transactions.
For a prospective franchisee, this highlights the importance of understanding all the conditions and requirements associated with transferring, amending, or terminating a franchise agreement. It also emphasizes the franchisor's need to protect its brand and system, and the legal mechanisms it employs to do so. Franchisees should carefully review the Release and seek legal counsel to fully understand its implications before signing.