Does Crepe De Licious have the right to sell its assets?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly affirm and agree that we may sell our assets, our rights to the Marks or to the System outright to a third party; may go public; may engage in a private placement of some or all of our securities; may merge, acquire other corporations, or be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and, with regard to any or all of the above sales, assignments and dispositions, you expressly and specifically waive any claims, demands or damages arising from or related to the loss of said Marks (or any variation thereof) and/or the loss of association with or identification of "Crepe Delicious Holding USA, Inc." as the franchisor. Nothing contained in this Agreement shall require us to remain in the restaurant business or to offer the same products and services, whether or not bearing the Marks, in the event that we exercise our right to assign our rights in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious has the right to sell its assets to a third party. The agreement states that Crepe De Licious may sell its assets, rights to the Marks, or the System outright. They may also go public, engage in private placements, merge with or acquire other corporations, or undergo financial restructuring.
This means that a prospective Crepe De Licious franchisee should be aware that the brand could be sold or change ownership during the term of their franchise agreement. The agreement also specifies that the franchisee waives any claims or damages related to the loss of the Marks or association with "Crepe Delicious Holding USA, Inc." as the franchisor, should such a sale occur.
This clause protects Crepe De Licious from potential legal action by franchisees if the brand is sold or undergoes significant changes. It is a fairly standard clause in franchise agreements, as it allows the franchisor flexibility in managing and growing the business. However, it also means that franchisees must be prepared for the possibility of a change in ownership and direction of the brand, and they will have limited recourse if they are unhappy with the new ownership.