Can a former Crepe De Licious franchisee represent any connection to the System after termination?
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
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)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, a former franchisee's rights to operate the franchised business are terminated once the agreement ends. The former franchisee must adhere to all covenants that survive the termination, expiration, or transfer of the agreement. Unless state law prevents it, the former franchisee must also execute Crepe De Licious's General Release Agreement.
After the franchise agreement ends, the former franchisee is bound by certain restrictions. They cannot engage in prohibited activities such as owning or operating a competitive business or diverting business away from Crepe De Licious. This restriction applies during the 'Restricted Period,' which is typically two years after the franchisee ceases to be a manager or officer, but could be shortened to 12 months if a court deems the two-year period unenforceable.
To ensure Crepe De Licious can contact them, the former franchisee must keep the franchisor informed of their current address and telephone number for three years after the agreement ends. This allows Crepe De Licious to maintain communication and address any potential issues related to the former franchise. These measures protect Crepe De Licious's interests and prevent former franchisees from leveraging their past association with the brand in a way that could harm the franchise system.