In the context of assigning a Crepe De Licious franchise, what is the role of the 'Owners'?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Former Franchisee and the undersigned Owners agree to comply with all of the covenants in the Former Franchise Agreement that expressly or by implication survive the termination, expiration, or transfer of the Former Franchise Agreement. Unless otherwise precluded by state law, Former Franchisee shall execute Franchisor's current form of General Release Agreement.
New Franchise Agreement.
New Franchisee shall execute the New Franchise Agreement for the Franchised Business (as amended by the form of Addendum prescribed by Franchisor, if applicable), and any other required contracts for the operation of a Crepe de licious franchise as stated in Franchisor's Franchise Disclosure Document.
Former Franchisee's Contact Information.
Former Franchisee agrees to keep Franchisor informed of its current address and telephone number at all times during the three-year period following the execution of this Agreement.
Acknowledgement by New Franchisee.
New Franchisee acknowledges and agrees that the purchase of the rights to the Franchised Business ("Transaction") occurred solely between Former Franchisee and New Franchisee.
New Franchisee also acknowledges and agrees that Franchisor played no role in the Transaction and that Franchisor's involvement was limited to the approval of Requested Assignment and any required actions regarding New Franchisee's signing of the New Franchise Agreement for the Franchised Business.
New Franchisee agrees that any claims, disputes, or issues relating New Franchisee's acquisition of the Franchised Business from Franchisee are between New Franchisee and Former Franchisee, and shall not involve Franchisor.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, in the event of a franchise rights transfer, both the former franchisee and their owners are required to adhere to the stipulations outlined in the original franchise agreement that remain in effect even after the termination, expiration, or transfer of the agreement. This ensures that obligations such as confidentiality, non-compete clauses, and other relevant terms are upheld during and after the transition to a new franchisee. The owners, along with the former franchisee, must comply with these surviving covenants.
In the context of assigning a Crepe De Licious franchise, the owners, along with the former franchisee, must comply with these surviving covenants. This means that even after the franchise is transferred, the owners are still bound by certain obligations from the original agreement. These obligations could include things like non-compete clauses, confidentiality agreements, and other restrictions that are designed to protect the Crepe De Licious brand and its franchisees.
Furthermore, the document stipulates that the former franchisee must provide updated contact information to the franchisor for a period of three years following the agreement's execution. This ensures that Crepe De Licious can maintain communication with the former franchisee regarding any ongoing obligations or potential issues related to the transfer. The new franchisee acknowledges that the franchisor's role is limited to approving the assignment and the new franchise agreement, and any disputes regarding the acquisition are solely between the former and new franchisees.
In summary, the 'Owners' play a crucial role in ensuring a smooth transition during a franchise assignment by adhering to the original agreement's surviving terms. This protects the Crepe De Licious system and brand while providing clarity for both the former and new franchisees regarding their respective responsibilities.