Is consent needed from Crepe De Licious to transfer any direct or indirect interest in the franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted these rights in reliance on your business experience, skill, financial resources and personal character (and that of your owners, officers, directors, Designated Managers and guarantors, if any). Accordingly, neither you, nor any immediate or remote successor to any part of your interest in this Agreement, nor any individual, partnership, corporation, or other legal entity which directly or indirectly owns any interest in you will sell, encumber, assign,
transfer, convey, pledge, merge or give away any direct or indirect interest in this Agreement, or in you, or in all or substantially all of the assets of the Franchised Business (collectively, a "Transfer"), unless we consent and all of the requirements of Section 15.03 and Section 15.04 are satisfied. Any transaction requiring our consent under this Section 15.02 for which our express written consent is not first obtained will be null and void, and shall be a material default of this Agreement. In that event: we may terminate this Agreement under Section 16.01; you will remain responsible for performing the post-termination obligations in Section 17; and the purported transferee may not operate the Franchised Business under the Marks or the System.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees need to obtain consent from Crepe De Licious to transfer any direct or indirect interest in the franchise. The FDD specifies that the rights and duties within the franchise agreement are personal to the franchisee, and Crepe De Licious has granted these rights based on the franchisee's business experience, skills, financial resources, and personal character. This extends to the franchisee's owners, officers, directors, designated managers, and guarantors.
Therefore, franchisees cannot sell, encumber, assign, transfer, convey, pledge, merge, or give away any direct or indirect interest in the agreement, the franchise, or the assets of the franchised business without Crepe De Licious's consent. Any transaction requiring consent that proceeds without obtaining written consent from Crepe De Licious will be considered null and void, constituting a material default of the agreement.
If a franchisee attempts to transfer their interest without Crepe De Licious's approval, Crepe De Licious has the right to terminate the agreement. In such a case, the franchisee remains responsible for post-termination obligations, and the purported transferee is prohibited from operating the franchised business under the Crepe De Licious marks or system. This provision ensures that Crepe De Licious maintains control over who operates under their brand and system.