For the purposes of the Crepe De Licious Owners Agreement, what constitutes an 'immediate family member'?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that you could circumvent the purpose of this Agreement by disclosing Know-how to an immediate family member (i.e., spouse, parent, sibling, child, grandparent or grandchild).
You also acknowledge that it would be difficult for us to prove whether you disclosed the Know-how to family members.
Therefore, you agree that you will be presumed to have violated the terms of this Agreement if any member of your immediate family: (i) engages in any Prohibited Activities during any period of time during which you are prohibited from engaging in the Prohibited Activities; or (ii) uses or discloses the Know-how.
However, you may rebut this presumption by furnishing evidence conclusively showing that you did not disclose the Know-how to the family member.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, an 'immediate family member' is defined specifically within the context of potential intellectual property or know-how disclosure. This definition is important because the franchisee could be held responsible if an immediate family member uses or discloses Crepe De Licious's intellectual property, with a presumption of violation unless the franchisee can prove otherwise.
Crepe De Licious defines immediate family member as a spouse, parent, sibling, child, or grandparent or grandchild. This definition is relevant because franchisees acknowledge they could circumvent the agreement by disclosing know-how to these individuals. The franchisor recognizes it would be difficult to prove such disclosures, so the agreement stipulates that if an immediate family member engages in prohibited activities or uses/discloses know-how, it's presumed the franchisee violated the agreement.
This clause places a significant responsibility on the Crepe De Licious franchisee to ensure their immediate family members do not engage in activities that could harm the franchise. While the franchisee can rebut the presumption of a violation, they must furnish conclusive evidence that they did not disclose the know-how. This could be challenging, highlighting the importance of understanding and communicating these restrictions to family members.
It is important to note that the definition of 'immediate family member' is explicitly tied to the context of protecting Crepe De Licious's intellectual property and know-how. This definition may not apply to other sections or aspects of the franchise agreement, so franchisees should carefully review the entire document to understand how 'immediate family member' is used in different contexts.