Can the Crepe De Licious Owners Agreement be amended or changed?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.5 Waiver of Notice. Without affecting Owners' obligations under this Section 4, we can extend, modify, or release any of Franchisee's indebtedness or obligation, or settle, adjust, or compromise any claims against Franchisee, all without notice to the Owners. Owners waive notice of amendment of the Franchise Agreement and notice of demand for payment or performance by Franchisee.
- 4.6 Effect of Owner's Death. Upon the death of an Owner, the estate of such Owner will be bound by the obligations in this Section 4, but only for defaults and obligations hereunder existing at the time of death; and the obligations of any other Owners will continue in full force and effect.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, the Owners Agreement can be amended under specific circumstances. Specifically, Crepe De Licious has the right to extend, modify, or release any of the franchisee's debt or obligations without notifying the owners. Additionally, Crepe De Licious can settle, adjust, or compromise any claims against the franchisee without informing the owners.
Owners also waive their right to receive notice of any amendments to the Franchise Agreement or any demands for payment or performance by the franchisee. This means that Crepe De Licious has considerable latitude in altering the financial terms or obligations of the franchise without requiring the owners' explicit consent or even informing them beforehand.
However, the FDD also states that Crepe De Licious may unilaterally modify the terms of the Confidentiality Agreement by providing written notice to the franchisee. These modifications can include limiting the scope of prohibited activities, narrowing the definition of a competitive business, shortening the restricted period, reducing the geographic scope of the restricted territory, or reducing the scope of any other covenant imposed under the agreement. This ensures the terms are enforceable under applicable law. This clause provides Crepe De Licious with the flexibility to adjust the agreement to ensure its enforceability, but it also introduces an element of uncertainty for the franchisee, as the terms can be altered during the agreement's term.