For the Crepe De Licious release, who is bound by the provisions of the release, and who benefits from it?
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.
NOW, THEREFORE, in consideration of Franchisor's consent, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, Releasor hereby agrees as follows:
(Signatures on following page)
, a FRANCHISEE'S OWNERS: Typed or Printed Name Typed or Printed Name Rev. 061518
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the release primarily involves the franchisee, the franchisor (Crepe Delicious Holding USA, Inc.), and potentially the franchisee's owners. The 'Releasor,' which includes the franchisee and potentially their owners, is bound by the terms and conditions of the release. This means they agree to waive certain rights or claims against Crepe De Licious as part of a specific transaction, such as a transfer of the franchise agreement or its termination. Crepe De Licious benefits from the release because it provides legal protection and clarity in these transactions.
The release is executed as a condition of Crepe De Licious's consent to specific actions like transferring the franchise agreement, entering into a successor agreement, amending the agreement, or terminating it. By signing the release, the franchisee and their owners agree to its terms in exchange for Crepe De Licious's consent. This ensures that Crepe De Licious is protected from potential future claims or liabilities related to the franchise agreement. The franchisor's requirement for a release is a fairly standard practice in franchising to mitigate legal risks during significant changes in the franchise relationship.
Specifically, in the context of a transfer, both the transferring franchisee and the proposed transferee must meet certain conditions, including signing releases. This ensures that Crepe De Licious is protected from any potential claims arising from either party involved in the transfer. The franchisor also benefits by ensuring that all outstanding amounts owed by the franchisee and their owners are paid, and that the restaurant conforms to the current standards. This process helps maintain the consistency and quality of the Crepe De Licious brand across all locations.