Does the Crepe De Licious Owners Agreement supersede prior agreements?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
effective upon the date of this Agreement, the Former Franchise Agreement shall terminate and all of
- Termination of Rights to the Franchised Business. The parties acknowledge and agree that
pursuant to the Former Franchise Agreement.
Former Franchisee's rights to operate the Franchised Business are terminated and that from the date of this Agreement only New Franchisee shall have the sole right to operate the Franchised Business under the New Franchise Agreement. Former Franchisee and the undersigned Owners agree to comply with all of the covenants in the Former Franchise Agreement that expressly or by implication survive the termination, expiration, or transfer of the Former Franchise Agreement. Unless otherwise precluded by state law, Former Franchisee shall execute Franchisor's current form of General Release Agreement.
New Franchise Agreement.
New Franchisee shall execute the New Franchise Agreement for the Franchised Business (as amended by the form of Addendum prescribed by Franchisor, if applicable), and any other required contracts for the operation of a Crepe de licious franchise as stated in Franchisor's Franchise Disclosure Document.
Former Franchisee's Contact Information.
Former Franchisee agrees to keep Franchisor informed of its current address and telephone number at all times during the three-year period following the execution of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, a Former Franchise Agreement is terminated once a new agreement is in place. Specifically, upon the effective date of the new agreement, the Former Franchise Agreement terminates, and the Former Franchisee's rights to operate the Franchised Business are terminated. Only the New Franchisee has the right to operate under the New Franchise Agreement.
This means that if a Crepe De Licious franchisee sells their business to a new franchisee, the old agreement is no longer valid once the new franchisee signs the New Franchise Agreement. The former franchisee's rights to operate the business are transferred to the new franchisee under the terms of the new agreement.
However, the Former Franchisee must still comply with any covenants in the Former Franchise Agreement that survive termination, expiration, or transfer. The Former Franchisee must also keep Crepe De Licious informed of their current address and telephone number for three years after the agreement is executed. This ensures that Crepe De Licious can contact the former franchisee if necessary, even after the business has been sold.