What conditions must be met for Crepe De Licious to approve a transfer of the Area Development Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Area Development Agreement | Summary | |
|---|---|---|---|
| b | Requirements for area developer to renew or extend | None | |
| С | Termination by area developer | None | |
| d | Termination by franchisor without cause | None | |
| е | Termination by franchisor with cause | Section 6 | We can terminate if you default. |
| f | "Cause" defined – curable defaults | Sections 6.3 and 6.4 | All other defaults not specified in Sections 6.1 and 6.2 of Area Development Agreement. |
| g | "Cause" defined – non- curable defaults | Sections 6.1 and 6.2 | Bankruptcy, termination of any individual Franchise Agreement for a Franchised Store operated by you or a person or entity affiliated with you, conviction of felony, and improper transfer. |
| h | Area developer's obligations on termination/non-renewal | Section 6.6 | Cease establishing or operating Franchised Stores under the System for which Franchise Agreements have not been signed at the time of termination and compliance with covenants. |
| i | Assignment of contract by franchisor | Section 7.1 | There are no limits on our right to assign the Area Development Agreement. |
| j | "Transfer" by area developer – defined | Section 7.2 | Includes a transfer of an interest in the Area Development Agreement, developer entity, or any material asset of your business. |
| k | Franchisor approval of transfer by area developer | Section 7.2 | We have the right to approve transfers. |
| 1 | Conditions for franchisor's approval of transfer | Sections 7.2 and 7.3 | Any of the conditions for transfer described in the Franchise Agreement executed pursuant to the Area Development Agreement that we deem applicable, and simultaneous transfer of Franchise Agreements executed pursuant to the Area Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the franchisor has the right to approve any transfers of the Area Development Agreement. A transfer includes transferring an interest in the Area Development Agreement, the developer entity, or any material asset of the business.
The conditions for Crepe De Licious's approval of a transfer are any conditions described in the Franchise Agreement executed according to the Area Development Agreement that Crepe De Licious deems applicable. Additionally, the simultaneous transfer of Franchise Agreements executed according to the Area Development Agreement is required.
This means that if you, as an area developer, wish to sell your rights to develop Crepe De Licious units in a specific area, you must get approval from Crepe De Licious. The franchisor can apply any transfer conditions from the standard franchise agreement to this area development transfer. Furthermore, any existing franchise agreements that were created under the area development agreement must be transferred at the same time.