With what laws must a Crepe De Licious franchisee comply?
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 radius from your Franchised Business (and including the premises of the Approved Location), and (ii) a 25-mile radius from all other Crepe de licious businesses that are operating or under construction (as provided in Section 17.09 hereof); and (p) you or the transferee must provide us with any additional information that we may reasonably request. We may withhold consent to the proposed transfer until all of these conditions are completely satisfied.
15.04 Right of First Refusal. Any individual or entity holding any direct or indirect interest in this Agreement or in a substantial portion of the assets of the Restaurant, Kiosk, or Food Truck or in you (if you are an entity) and who desires to accept any bona fide offer from a third party to purchase the relevant interest or assets must notify us in writing of each offer, and must provide the information and documentation relating to the offer as we may require.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, a franchisee must comply with applicable laws regarding the transfer of a franchise. Specifically, Crepe De Licious may withhold consent for a transfer to a new franchisee to the extent permitted by applicable law until certain conditions are met by both the current franchisee and the prospective transferee.
These conditions include the transferee meeting Crepe De Licious's standards for new franchisees, providing necessary documentation, and signing the current franchise agreement. Additionally, either the current franchisee or the 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 unit must also be refurbished to meet current standards, and all outstanding amounts owed to Crepe De Licious and its affiliates must be paid.
The current franchisee must not be in default of any agreements, provide at least 30 days' notice of the proposed transfer, and reimburse Crepe De Licious for any broker fees incurred. Furthermore, the unit must have been in operation for at least one year, and the transferee must have sufficient business experience and financial resources. The landlord's consent to transfer the lease is also required. 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.
Finally, the franchisee must comply with laws regarding intellectual property. The franchisee agrees not to use the Intellectual Property or the System for any purpose other than the performance of their duties for Franchisee and within the scope of their employment or other engagement with Franchisee. These restrictions on Know-how, Intellectual Property and the System shall not apply to any information which is information publicly known or becomes lawfully known in the public domain other than through a breach of this Agreement or is required or compelled by law to be disclosed, provided that you will give reasonable notice to us to allow us to seek protective or other court orders.