What is the Releasor obligated to do regarding ownership interest in the 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.
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:
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, a Releasor's obligations regarding ownership interest involve executing a release as a condition for the franchisor's consent to certain actions. These actions include transferring the Franchise Agreement, entering into a successor franchise agreement, amending the existing agreement, or terminating the agreement. The Releasor agrees to execute this release based on the terms and conditions outlined in the document, acknowledging the franchisor's consent as sufficient consideration.
This means that if a Crepe De Licious franchisee wants to transfer their franchise, get a successor agreement, change their current agreement, or end it, any 'Releasor' involved must sign a release. This release likely waives certain rights or claims the Releasor might have against Crepe De Licious, ensuring a clean break or transition. The franchisor's consent to the transfer, amendment, or termination is contingent upon this release being signed.
For a prospective Crepe De Licious franchisee, this highlights the importance of understanding who might be considered a 'Releasor' in their specific circumstances. This could include owners, partners, or other individuals with a significant interest in the franchise. Before entering into any agreement, franchisees should carefully review the terms of the release and seek legal counsel to fully understand the implications of waiving potential rights or claims. This ensures that all parties are aware of their obligations and the conditions under which the franchisor's consent is granted for any changes to the franchise agreement.