What is the purpose of the 'Approval of Requested Assignment' agreement for a Crepe De Licious franchise?
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)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the 'Approval of Requested Assignment' agreement primarily serves to document the franchisor's approval of the transfer of franchise rights from a former franchisee to a new franchisee. This agreement clarifies the roles and responsibilities of each party involved in the transfer process.
Specifically, the agreement acknowledges that the purchase of the franchise rights is solely between the former and new franchisees, and Crepe De Licious's role is limited to approving the assignment and ensuring the new franchisee signs the current franchise agreement. This protects Crepe De Licious from disputes arising between the former and new franchisees regarding the acquisition of the franchised business.
Furthermore, the agreement stipulates that the former franchisee's rights to operate the business are terminated, and only the new franchisee has the right to operate under the new franchise agreement. The former franchisee must also comply with any surviving covenants from the original agreement and, unless prohibited by state law, execute a general release agreement. The former franchisee is also required to keep Crepe De Licious informed of their contact information for three years following the agreement's execution. This ensures a clear transition of rights and responsibilities and protects the Crepe De Licious brand and system.