What is the 'Former Franchise Agreement' referring to in the Crepe De Licious assignment agreement?
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)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the 'Former Franchise Agreement' refers to the original agreement between Crepe De Licious and the franchisee who is transferring their rights to a new franchisee. This agreement outlines the original terms and conditions under which the former franchisee operated their Crepe De Licious business.
As part of the assignment agreement, the former franchisee's rights to operate the franchised business are terminated, and only the new franchisee has the right to operate under a new franchise agreement. The former franchisee must comply with any covenants in the former franchise agreement that survive termination or transfer. Additionally, the former franchisee may be required to execute a general release agreement, unless state law prevents it.
Prospective franchisees should understand that when purchasing an existing Crepe De Licious franchise, the transaction occurs solely between the former and new franchisees. Crepe De Licious's involvement is limited to approving the assignment and ensuring the new franchisee signs a new franchise agreement. Any disputes related to the acquisition of the franchise are between the two franchisees and do not involve Crepe De Licious.