Does Crepe De Licious have the right to sell its assets, marks, or system?
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 Crepe De Licious's 2025 Franchise Disclosure Document, Crepe De Licious has the right to sell its assets, rights to the Marks, or the System to a third party. They may also go public, engage in private placement of securities, merge with or acquire other corporations, or undergo financial restructuring.
As a franchisee, you expressly agree that Crepe De Licious can undertake these actions. You also waive any claims, demands, or damages related to the loss of the Marks or the association with "Crepe Delicious Holding USA, Inc." as the franchisor, resulting from these sales or dispositions.
This means that Crepe De Licious has broad latitude to alter its business structure, ownership, or even the brand itself. While this provides flexibility for Crepe De Licious, it carries risk for the franchisee. The franchisee should be aware that the brand and support systems could change hands, potentially impacting their business, and they would have limited recourse.