What standards must a proposed transferee meet to become a Crepe De Licious franchisee?
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, a proposed transferee must meet several conditions to be approved as a franchisee. The transferee must apply for a Crepe De Licious franchise and meet all of the franchisor's current standards and requirements for new franchisees. They must also provide the same supporting documents as a new applicant and complete the initial training program to Crepe De Licious's satisfaction.
Financially, either the current franchisee or the proposed transferee must pay a transfer fee of $10,000, which is reduced to $5,000 if the transferee is an existing Crepe De Licious franchisee. A non-refundable deposit of $1,000 is due upon the request for transfer approval. The transferee must also have sufficient business experience and financial resources to operate the franchise.
Operationally, the Restaurant, Kiosk, or Food Truck must be refurbished to meet Crepe De Licious's current standards. The proposed transferee must sign the current form of franchise agreement, which includes a new initial term of five years, and the transferee's owners must sign the required owners agreement or guaranty. The location must have been in operation for at least one year, and the current franchisee must not be in default of their agreement. The current franchisee must also sign a non-compete agreement, restricting them from engaging in a competitive business within a 25-mile radius of the transferred location and other Crepe De Licious businesses for two years.
Finally, the landlord must consent to the lease transfer, and both the current franchisee and the transferee must provide general releases to Crepe De Licious and its affiliates, ensuring all outstanding amounts are paid. The franchisor may also request additional information as needed to assess the transfer. These conditions ensure that any new franchisee maintains Crepe De Licious's standards and protects the brand's interests.