What is the purpose of the Waiver and Release of Claims related to a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Crepe de licious business;
WHEREAS, [Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement] or [the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release], and Franchisor has consented to such [transfer/successor franchise agreement/amendment/termination/other reason]; and
WHEREAS, as a condition to Franchisor's consent to [transfer the Agreement/enter into a successor franchise agreement/amend the Agreement/terminate the Agreement/other reason], Releasor has agreed to execute this Release upon the terms and conditions stated below.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the Waiver and Release of Claims is used when a franchisee transfers their agreement, enters into a successor franchise agreement, amends the agreement, or terminates the agreement. Crepe De Licious requires the Releasor to execute this release as a condition of the franchisor's consent to these actions. The releasor agrees to the terms and conditions outlined in the release in exchange for the franchisor's consent.
This agreement protects Crepe De Licious from potential future claims or liabilities arising from the previous franchise agreement. It ensures a clean break or transition when changes occur in the franchise ownership or agreement terms. The specific reasons for requiring the waiver are noted in the agreement, such as a transfer, successor agreement, amendment, or termination.
For a prospective Crepe De Licious franchisee, understanding this requirement is crucial. If they plan to transfer their franchise, seek a successor agreement, modify their existing agreement, or terminate it, they will likely need to sign this release. It is important to carefully review the terms of the release with legal counsel to fully understand the rights they are waiving and the potential implications. This agreement is a standard practice in franchising to mitigate risks and ensure clarity during transitions.