If the Area Developer for Crepe De Licious is not an individual, what must they designate?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Designated Manager. If Area Developer is other than an individual, Area Developer shall designate, subject to Franchisor's reasonable approval, one Manager (as defined in Section 9.1) who is an individual person, and who shall be responsible for general oversight and management of the development of the Franchised Restaurant under this Agreement and the operations of all such Franchised Restaurant open and in operation on behalf of Area Developer (the "Designated Manager"). Area Developer acknowledges and agrees that Franchisor shall have the right to rely upon the Designated Manager to have been given, by Area Developer, the responsibility and decision-making authority regarding the Area Developer's business and operation. In the event the person designated as the Designated Manager
becomes incapacitated, leaves the employ of Area Developer, transfers his/her interest in Area Developer, or otherwise ceases to supervise the development of the Franchised Restaurant, Area Developer shall promptly designate a new Designated Manager, subject to Franchisor's reasonable approval.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, if the Area Developer is not an individual, they must designate a Designated Manager. This Designated Manager must be an individual person who is responsible for the general oversight and management of the development of the Franchised Restaurants under the Area Development Agreement. They also oversee the operations of all such Franchised Restaurants that are open and operating on behalf of the Area Developer.
Crepe De Licious emphasizes that the franchisor has the right to rely on this Designated Manager, assuming they have been given the necessary responsibility and decision-making authority by the Area Developer regarding their business and operations. This ensures that Crepe De Licious has a direct point of contact and accountability within the Area Developer's organization.
If the Designated Manager becomes incapacitated, leaves the Area Developer's employment, transfers their interest in the Area Developer entity, or otherwise ceases to supervise the development of the Franchised Restaurants, the Area Developer is required to promptly designate a new Designated Manager. This new manager is subject to the franchisor's reasonable approval, ensuring that the replacement meets Crepe De Licious's standards for overseeing the development and operation of the franchises within the designated area.