What is the consequence for a Crepe De Licious franchisee who refuses to comply with post-termination obligations regarding premises changes?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
17.10 Other Post-Termination Obligations. Upon the expiration or termination of this Agreement by any means or for any reason, you will immediately and strictly comply with all other provisions of this Agreement pertaining to post-termination obligations.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, franchisees are obligated to comply with post-termination obligations. Specifically, Section 17.10 of the franchise agreement states that upon the expiration or termination of the agreement, the franchisee must immediately and strictly comply with all provisions pertaining to post-termination obligations. However, the document does not explicitly detail the consequences of failing to comply with these post-termination obligations regarding premises changes.
While the FDD excerpt does not specify the exact penalties for non-compliance, it emphasizes the importance of adhering to all post-termination obligations. These obligations likely include, but are not limited to, ceasing the use of Crepe De Licious's trademarks and proprietary information, and potentially altering the physical appearance of the former franchise location to remove any branding or elements associated with Crepe De Licious.
Prospective franchisees should seek clarification from Crepe De Licious regarding the specific ramifications of failing to meet post-termination obligations, including those related to premises changes. Understanding these consequences is crucial for making informed decisions and avoiding potential legal or financial repercussions upon termination or expiration of the franchise agreement. It would be prudent to ask the franchisor for examples of situations where franchisees failed to comply and what actions Crepe De Licious took in response.