What must the Franchisor desire to do in the Crepe De Licious assignment 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)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the assignment agreement outlines the conditions under which the Franchisor consents to the transfer of a franchise agreement. Specifically, the franchisor must consent to the transfer of the agreement, entering into a successor franchise agreement, amending the agreement, or terminating the agreement. This consent is a prerequisite for the assignment to proceed.
As a condition of this consent, the releasor (typically the franchisee) must agree to execute a release, adhering to the terms and conditions outlined in the agreement. This ensures that all parties are in agreement regarding the transfer, successor agreement, amendment, or termination. The franchisor's consent is contingent upon this release, which protects their interests and ensures compliance with the franchise agreement terms.
In practical terms, this means that a Crepe De Licious franchisee looking to transfer their franchise must first obtain the franchisor's approval. This approval is not guaranteed and is subject to certain conditions, including the execution of a release. Prospective franchisees should understand that transferring a franchise involves a formal process with specific legal and financial obligations that must be met to the franchisor's satisfaction.