What is the role of the 'Owners' in the context of the Crepe De Licious assignment agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ners: Name Address Percentage Owned Franchisee acknowledges this Form of Ownership applies to the Franchised Business authorized under the Franchise Agreement. Use additional sheets if necessary. Any and all changes to the above information must be reported to Franchisor in writing.
(Signature on following page)
Entity name (if any)
ATTACHMENT C TO THE FRANCHISE AGREEMENT
OWNERS AGREEMENT
As a condition to the execution by Crepe Delicious Holding USA, Inc. ("we" or "us"), of a Franchise Agreement with ("Franchisee"), each of the undersigned individuals ("Owners"), who constitute all of the owners of a direct or indirect beneficial interest in Franchisee, as well as their respective spouses , covenant and agree to be bound by this Owners Agreement ("Owners Agreement"). 1. Acknowledgments. 1.1 Franchise Agreement. Franchisee entered into a franchise agreement with us effective as
- of ______________________________, 20___ ("Franchise Agreement"). Capitalized words not defined in this Owners Agreement will have the same meanings ascribed to them in the Franchise Agreement. 1.2 Role of Owners. Owners are the beneficial owners or spouses of the beneficial owners of
- all of the equity interest, membership interest, or other equity controlling interest in Franchisee and acknowledge there are benefits received and to be received by each Owner, jointly and severally, and for themselves, their heirs, legal representatives and assigns. Franchisee's obligations under the Franchise Agreement, including the confidentiality and non-compete obligations, would be of little value to us if Franchisee's owners were not bound by the same requirements. Under the provisions of the Franchise Agreement, Owners are required to enter into this Owners Agreement as a condition to our entering into the Franchise Agreement with Franchisee. Owners will be jointly and severally liable for any breach of this Owners Agreement.
2. Non-Disclosure and Protection of Confidential Information.
- 2.1 Under the Franchise Agreement, we will provide Franchisee with specialized training, proprietary trade secrets, and other Confidential Information relating to the establishment and operation of a franchised business.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the Owners Agreement is a crucial component of the franchise agreement. As a condition for Crepe De Licious to enter into a franchise agreement with a franchisee, all individuals who have a direct or indirect beneficial interest in the franchisee, along with their spouses, must agree to be bound by the Owners Agreement.
The Owners are essentially the beneficial owners or spouses of the beneficial owners who hold equity or controlling interest in the franchisee entity. Crepe De Licious requires the Owners Agreement because the obligations of the franchisee under the Franchise Agreement, particularly those related to confidentiality and non-competition, would be of limited value if the owners were not also bound by the same requirements. Therefore, the Owners are jointly and severally liable for any breach of the Owners Agreement.
Crepe De Licious grants the Franchise Agreement to the Franchisee based on the business experience, skills, financial resources, and personal character of the Owners. The Owners cannot transfer any direct or indirect interest in the Franchisee without first complying with the transfer sections outlined in the Franchise Agreement. Any attempted transfer without the franchisor's express written consent constitutes a material breach of both the Owners Agreement and the Franchise Agreement. This ensures that Crepe De Licious maintains control over who is involved in the franchise and that all parties are committed to upholding the terms of the agreement.