Does the Crepe De Licious franchisor have any liability to the Area Developer for decisions made?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
In the absence of an applicable statute, Franchisor will have no liability to Area Developer for any such decision or action.
Franchisor and Area Developer intend that the exercise of Franchisor rights or discretion will not be subject to limitation or review.
If applicable law implies a covenant of good faith and fair dealing in this Agreement, Franchisor and Area Developer agree that such covenant shall not imply any rights or obligations that are inconsistent with a fair construction of the terms of this Agreement and that this Agreement grants Franchisor the right to make decisions, take actions and/or refrain from taking actions not inconsistent with Area Developer's rights and obligations hereunder.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the franchisor generally has no liability to the Area Developer for decisions or actions taken. Specifically, in the absence of an applicable statute, Crepe De Licious will not be held liable to the Area Developer for any decision or action made by the franchisor.
The FDD states that Crepe De Licious and the Area Developer agree that the franchisor's rights and discretion will not be subject to limitation or review. This means that Crepe De Licious retains significant control over the franchise system and its operation, and the Area Developer has limited recourse regarding these decisions.
Furthermore, if applicable law implies a covenant of good faith and fair dealing, Crepe De Licious and the Area Developer agree that such covenant shall not imply any rights or obligations inconsistent with a fair construction of the agreement's terms. The agreement grants Crepe De Licious the right to make decisions, take actions, and/or refrain from taking actions that are consistent with the Area Developer's rights and obligations under the agreement. This reinforces the franchisor's broad discretion in managing the Crepe De Licious system while still adhering to the Area Developer's contractual rights.