What must a Crepe De Licious franchisee do to qualify for an offer of a successor franchise agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Crepe de licious business;
WHEREAS, [Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement] or [the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release], and Franchisor has consented to such [transfer/successor franchise agreement/amendment/termination/other reason]; and
WHEREAS, as a condition to Franchisor's consent to [transfer the Agreement/enter into a successor franchise agreement/amend the Agreement/terminate the Agreement/other reason], Releasor has agreed to execute this Release upon the terms and conditions stated below.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the requirements for obtaining a successor franchise agreement are tied to the conditions for transferring a franchise. While the document mentions the possibility of entering into a successor franchise agreement, it does not explicitly detail the specific conditions a franchisee must meet to qualify for an offer of a successor agreement. Instead, it focuses on the conditions required for a transfer of the existing franchise agreement.
To transfer a Crepe De Licious franchise, several conditions must be met by both the current franchisee and the proposed transferee. The proposed transferee must apply for a franchise and meet all of Crepe De Licious's current standards for new franchisees. Either the current franchisee or the transferee must provide written details of the proposed transfer and supporting documents, similar to a new franchise application. A transfer fee of $10,000 is required ($5,000 if the transferee is an existing franchisee), including a non-refundable $1,000 deposit upon requesting approval.
Furthermore, the proposed transferee must sign the current franchise agreement, which includes a new initial term of five years, and complete the initial training. The restaurant, kiosk, or food truck must be refurbished to meet current standards. Crepe De Licious requires general releases from the current franchisee and their owners, along with payment of all outstanding amounts owed to Crepe De Licious and its affiliates. The current franchisee must not be in default and must provide at least 30 days' written notice of the proposed transfer. A non-compete agreement is also required, restricting the franchisee from engaging in a competitive business within a 25-mile radius of the franchised business and other Crepe De Licious locations for two years.
Given that the FDD excerpts do not provide explicit details on qualifying for a successor franchise agreement, it is important for a prospective franchisee to directly ask Crepe De Licious about the specific criteria and process involved in obtaining a successor agreement, as opposed to merely transferring the existing agreement. Understanding these conditions is crucial for long-term planning and investment in the franchise.