What is required of a Crepe De Licious franchisee when seeking approval or consent from the franchisor?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ation obligations in Section 17; and the purported transferee may not operate the Franchised Business under the Marks or the System.
15.03 Transfer Conditions. We may, to the extent permitted by applicable law, condition and withhold our consent to a Transfer, when required under Section 15.02 until the transferee and you meet certain conditions. If a Transfer is to occur: (a) the proposed transferee must apply for a Crepe de licious franchise and must meet all of our then-current standards and requirements for becoming a Crepe de licious franchisee, in our sole discretion; (b) you or the proposed transferee must provide to us in writing the circumstances of the proposed Transfer; (c) the proposed transferee must provide to us the same supporting documents as a new franchise applicant; (d) you or the proposed transferee must pay us a transfer fee of $10,000 ($5,000 if the proposed transferee is an existing Crepe de licious franchisee), including a non-refundable $1,000 deposit that is due upon the request for approval of a Transfer (e) the proposed transferee must sign the form of franchise agreement and related documents we then offer to prospective franchisees, which agreement will provide for a new initial term of five (5) years, and the transferee's owners will sign the form of owners agreement or guaranty we then require of franchisees' owners; (f) the proposed transferee and its designated manager must complete to our satisfaction the initial training then required for new franchisees and their designated managers; (g) you or the proposed transferee must refurbish the Restaurant, Kiosk, or Food Truck to conform to our then-current standards and specifications; (h) we must receive general releases from you and each of your owners, and payment of all amounts then owed to us and our affiliates by you and your owners and affiliates, and the transferee and its owners and affiliates, under this Agreement or otherwise; (i) you must not be in default under this Agreement or any other agreement with us or any of our affiliates; (j) you must give us at least 30 days' prior written notice of any proposed Transfer; (k) you must reimburse us upon receipt of our invoice for any broker or other placement fees we incur as a result of the transfer; (l) the Restaurant, Kiosk, or Food Truck must be in operation for at least one (1) year, if we have not exercised right of first refusal; (m) the proposed transferee must have sufficient business experience and financial resources to operate the Franchise; (n) your landlord must consent to transfer the lease to the proposed transferee; (o) you must sign a non-compete agreement not to engage in a competitive business for two (2) years within: (i) a 25 mile
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise, both the franchisee and the proposed transferee must meet several conditions to obtain the franchisor's consent. The proposed transferee must apply for a Crepe De Licious franchise and meet all of the franchisor's current standards and requirements for new franchisees, as determined solely by the franchisor.
Both parties must provide written notice of the proposed transfer, and the transferee must submit the same supporting documents as a new franchise applicant. A transfer fee of $10,000 is required, with a non-refundable $1,000 deposit due upon requesting approval. However, the transfer fee is reduced to $5,000 if the transferee is an existing Crepe De Licious franchisee. The transferee must also sign the current franchise agreement, which includes a new initial term of five years, and the transferee's owners must sign the required owners agreement or guaranty.
Furthermore, the transferee and their manager must complete the initial training program, and the restaurant, kiosk, or food truck must be refurbished to meet current standards. The franchisor requires general releases from the franchisee and their owners, as well as payment of all outstanding amounts owed by both parties and their affiliates. The franchisee must not be in default, provide at least 30 days' written notice, and reimburse any broker fees incurred by the franchisor. The business must have been in operation for at least one year, and the transferee must have sufficient business experience and financial resources. Landlord consent to the lease transfer is also necessary, and the franchisee must sign a two-year non-compete agreement within a 25-mile radius of the transferred location and other Crepe De Licious businesses. Finally, both parties must provide any additional information reasonably requested by Crepe De Licious.