What laws must a Crepe De Licious franchisee comply with?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
l and void, and shall be a material default of this Agreement. In that event: we may terminate this Agreement under Section 16.01; you will remain responsible for performing the post-termination 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; (o) you must sign a non-compete agreement not to engage in a competitive business for two (2) years within: (i) a 25 mile
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, franchisees must comply with applicable laws when transferring their franchise. Specifically, Crepe De Licious may withhold consent for a transfer to the extent permitted by applicable law until certain conditions are met by both the franchisee and the proposed transferee.
These conditions include the transferee meeting Crepe De Licious's current standards for franchisees, providing written circumstances of the transfer, submitting supporting documents like a new applicant, and signing the current franchise agreement. Additionally, either the franchisee or transferee must pay a transfer fee of $10,000 (or $5,000 if the transferee is an existing franchisee), which includes a non-refundable $1,000 deposit. The transferee and their manager must also complete the required initial training, and the restaurant, kiosk, or food truck must be refurbished to meet current standards.
Further conditions include receiving general releases from the franchisee and their owners, payment of all outstanding amounts owed to Crepe De Licious and its affiliates, and ensuring the franchisee is not in default of any agreements. The franchisee must also provide at least 30 days' written notice of the proposed transfer and reimburse Crepe De Licious for any broker fees incurred. The business must have been in operation for at least one year, the transferee must have sufficient business experience and financial resources, and the landlord must consent to the lease transfer. Finally, the franchisee must sign a non-compete agreement for two years within a 25-mile radius of the franchised business and other Crepe De Licious locations, and provide any additional information reasonably requested by Crepe De Licious.
This indicates that Crepe De Licious franchisees need to be aware of and adhere to all relevant laws and regulations pertaining to franchise transfers, including those related to contracts, business operations, and non-compete agreements. Compliance with these laws is essential for ensuring a smooth and legally sound transfer process.