Does the Crepe De Licious Owners Agreement create any rights or remedies for third parties?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
New Franchisee acknowledges and agrees that the purchase of the rights to the Franchised Business ("Transaction") occurred solely between Former Franchisee and New Franchisee.
New Franchisee also acknowledges and agrees that Franchisor played no role in the Transaction and that Franchisor's involvement was limited to the approval of Requested Assignment and any required actions regarding New Franchisee's signing of the New Franchise Agreement for the Franchised Business.
New Franchisee agrees that any claims, disputes, or issues relating New Franchisee's acquisition of the Franchised Business from Franchisee are between New Franchisee and Former Franchisee, and shall not involve Franchisor.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the provided excerpts do not explicitly address whether the Owners Agreement creates rights or remedies for third parties. However, several agreements and clauses within the franchise agreement outline relationships and obligations that could potentially involve or affect third parties.
For instance, the franchise agreement discusses the relationship between the franchisor, franchisee, former franchisee, and new franchisee in the context of a transfer. Specifically, the New Franchisee acknowledges that Crepe De Licious played no role in the transaction between the New Franchisee and the Former Franchisee and that any disputes arising from the acquisition are solely between them. This suggests that Crepe De Licious aims to limit its liability and involvement in disputes between franchisees, which could be seen as a way of managing third-party interactions.
Additionally, the franchise agreement includes clauses about third-party delivery services and ghost kitchens, stating that the franchisee has no right to compensation from sales made through these channels within their territory. This indicates that while Crepe De Licious reserves the right to contract with third-party services, the franchisee's rights are limited in relation to those third parties. To fully understand whether the Owners Agreement creates rights or remedies for third parties, a prospective franchisee should specifically ask Crepe De Licious for clarification on this matter and review the complete agreement with legal counsel.