What standards must a Designated Manager meet for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Designated Manager. If Area Developer is other than an individual, Area Developer shall designate, subject to Franchisor's reasonable approval, one Manager (as defined in Section 9.1) who is an individual person, and who shall be responsible for general oversight and management of the development of the Franchised Restaurant under this Agreement and the operations of all such Franchised Restaurant open and in operation on behalf of Area Developer (the "Designated Manager"). Area Developer acknowledges and agrees that Franchisor shall have the right to rely upon the Designated Manager to have been given, by Area Developer, the responsibility and decision-making authority regarding the Area Developer's business and operation. In the event the person designated as the Designated Manager
becomes incapacitated, leaves the employ of Area Developer, transfers his/her interest in Area Developer, or otherwise ceases to supervise the development of the Franchised Restaurant, Area Developer shall promptly designate a new Designated Manager, subject to Franchisor's reasonable approval.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, if the Area Developer is not an individual, they must designate a manager who is an individual. This Designated Manager is subject to Crepe De Licious's reasonable approval and will be responsible for the general oversight and management of the development of the Franchised Restaurant. This includes the operations of all such Franchised Restaurants open and in operation on behalf of the Area Developer.
Crepe De Licious emphasizes that they will rely on the Designated Manager to have the responsibility and decision-making authority regarding the Area Developer's business and operation. If the Designated Manager becomes incapacitated, leaves the Area Developer's employment, transfers their interest, or otherwise ceases to supervise the development of the Franchised Restaurant, the Area Developer must promptly designate a new Designated Manager, again subject to Crepe De Licious's approval.
This requirement ensures that Crepe De Licious has a direct point of contact and a responsible party overseeing the operations, especially when the Area Developer is a corporate entity. The approval process allows Crepe De Licious to maintain its standards and ensure that the Designated Manager is competent and capable of fulfilling their responsibilities. This is a common practice in franchising, as franchisors often require a designated individual to be responsible for the day-to-day operations and adherence to brand standards.