Who can manage a Crepe De Licious franchise if the franchisee is an entity?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
PERATION OF THE FRANCHISE BUSINESS**
The Crepe de licious Franchise will be managed by you, or if you are an entity, by one of your owners who is a natural person with at least 25% ownership interest and voting power in the entity ("Managing Owner"), unless you are participating in the Management Program. Under certain circumstances, we may allow you to appoint a designated manager ("Designated Manager") to run the dayto-day operations of your Crepe de licious Franchise. The Designated Manager must successfully complete
our training program (See Item 11). We may require that the Designated Manager have an ownership interest in the legal entity of the Franchise owner. If you replace a Designated Manager, the new Designated Manager must satisfactorily complete our training program at your own expense.
Any Designated Manager and, if you are an entity, any officer that does not own equity in the franchisee entity must sign the System Protection Agreement, the form of which is attached to this Franchise Disclosure Document in Exhibit G. All of your employees, independent contractors, agents, or representatives that may have access to our Confidential Information must sign a Confidentiality Agreement (unless they already signed a System Protection Agreement), the current form of which is attached to this Franchise Disclosure Document in Exhibit G. If you are an entity, each owner (i.e., each person holding an ownership interest in you) must sign an Owners Agreement guarantying the obligations of the entity in the form of which is attached to the Franchise Agreement as Attachment C. We also require that the spouses of the Franchise owners sign the Owners Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, if the franchisee is a business entity, the franchise will be managed by one of the entity's owners. This owner must be a natural person with at least 25% ownership interest and voting power in the entity; this person is referred to as the "Managing Owner".
However, Crepe De Licious offers a Management Program under which the franchisee may participate. Under certain circumstances, Crepe De Licious may allow the franchisee to appoint a Designated Manager to run the day-to-day operations of the Crepe De Licious Franchise. The Designated Manager must successfully complete the Crepe De Licious training program. Crepe De Licious may require that the Designated Manager have an ownership interest in the legal entity of the Franchise owner. If a Designated Manager is replaced, the new Designated Manager must satisfactorily complete the training program at the franchisee's own expense.
Any Designated Manager and, if the franchisee is an entity, any officer that does not own equity in the franchisee entity must sign the System Protection Agreement. All employees, independent contractors, agents, or representatives that may have access to Crepe De Licious's Confidential Information must sign a Confidentiality Agreement (unless they already signed a System Protection Agreement). If the franchisee is an entity, each owner (i.e., each person holding an ownership interest in the entity) must sign an Owners Agreement guarantying the obligations of the entity. Crepe De Licious also requires that the spouses of the Franchise owners sign the Owners Agreement.