What is the date of the Former Franchise Agreement for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
effective upon the date of this Agreement, the Former Franchise Agreement shall terminate and all of
- Termination of Rights to the Franchised Business. The parties acknowledge and agree that
pursuant to the Former Franchise Agreement.
Former Franchisee's rights to operate the Franchised Business are terminated and that from the date of this Agreement only New Franchisee shall have the sole right to operate the Franchised Business under the New Franchise Agreement. 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.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
The 2025 Crepe De Licious Franchise Disclosure Document (FDD) refers to a "Former Franchise Agreement" in the context of transferring franchise ownership. Specifically, the FDD outlines the process when a new franchisee takes over an existing Crepe De Licious location from a former franchisee.
The FDD states that when a transfer occurs, the "Former Franchise Agreement" terminates upon the effective date of the new agreement. The former franchisee's rights to operate the business end on this date, and only the new franchisee has the right to operate under the "New Franchise Agreement." The former franchisee must still comply with any obligations that survive termination, such as confidentiality or non-compete clauses. The former franchisee may also be required to sign a General Release Agreement.
While the 2025 FDD mentions the "Former Franchise Agreement" and its termination upon transfer, it does not provide the specific date of the original "Former Franchise Agreement." A prospective franchisee should ask Crepe De Licious for clarification on the typical terms and conditions that were included in the Former Franchise Agreement.