factual

Can a Crepe De Licious franchisee modify their lease without permission?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

ation obligations in Section 17; and the purported transferee may not operate the Franchised Business under the Marks or the System.

15.03 Transfer Conditions. We may, to the extent permitted by applicable law, condition and withhold our consent to a Transfer, when required under Section 15.02 until the transferee and you meet certain conditions. If a Transfer is to occur: (a) the proposed transferee must apply for a Crepe de licious franchise and must meet all of our then-current standards and requirements for becoming a Crepe de licious franchisee, in our sole discretion; (b) you or the proposed transferee must provide to us in writing the circumstances of the proposed Transfer; (c) the proposed transferee must provide to us the same supporting documents as a new franchise applicant; (d) you or the proposed transferee must pay us a transfer fee of $10,000 ($5,000 if the proposed transferee is an existing Crepe de licious franchisee), including a non-refundable $1,000 deposit that is due upon the request for approval of a Transfer (e) the proposed transferee must sign the form of franchise agreement and related documents we then offer to prospective franchisees, which agreement will provide for a new initial term of five (5) years, and the transferee's owners will sign the form of owners agreement or guaranty we then require of franchisees' owners; (f) the proposed transferee and its designated manager must complete to our satisfaction the initial training then required for new franchisees and their designated managers; (g) you or the proposed transferee must refurbish the Restaurant, Kiosk, or Food Truck to conform to our then-current standards and specifications; (h) we must receive general releases from you and each of your owners, and payment of all amounts then owed to us and our affiliates by you and your owners and affiliates, and the transferee and its owners and affiliates, under this Agreement or otherwise; (i) you must not be in default under this Agreement or any other agreement with us or any of our affiliates; (j) you must give us at least 30 days' prior written notice of any proposed Transfer; (k) you must reimburse us upon receipt of our invoice for any broker or other placement fees we incur as a result of the transfer; (l) the Restaurant, Kiosk, or Food Truck must be in operation for at least one (1) year, if we have not exercised right of first refusal; (m) the proposed transferee must have sufficient business experience and financial resources to operate the Franchise; (n) your landlord must consent to transfer the lease to the proposed transferee;

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

Based on the 2025 Crepe De Licious Franchise Disclosure Document, a franchisee needs the landlord's consent to transfer the lease to a proposed transferee during a transfer of ownership. However, the document does not explicitly state whether a franchisee can modify their lease without permission from Crepe De Licious during the normal course of business, outside of a transfer situation.

This lack of explicit information means prospective franchisees should seek clarification from Crepe De Licious regarding lease modifications. Understanding the franchisor's policies on lease modifications is crucial, as it can impact the franchisee's ability to negotiate favorable terms or make necessary changes to the leased premises.

Therefore, it is important for a potential Crepe De Licious franchisee to ask the franchisor directly about the specific requirements and restrictions related to lease modifications during the franchise term. This inquiry should cover what types of modifications require franchisor approval, the process for obtaining such approval, and any potential consequences for making unauthorized modifications.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.