After the termination of a Crepe De Licious franchise agreement, what representation to the public is prohibited?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Former Franchisee's rights to operate the Franchised Business are terminated and that from the date of this Agreement only New Franchisee shall have the sole right to operate the Franchised Business under the New Franchise Agreement. Former Franchisee and the undersigned Owners agree to comply with all of the covenants in the Former Franchise Agreement that expressly or by implication survive the termination, expiration, or transfer of the Former Franchise Agreement. Unless otherwise precluded by state law, Former Franchisee shall execute Franchisor's current form of General Release Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, after the termination of a franchise agreement, the former franchisee's rights to operate the Franchised Business are terminated. Only the New Franchisee has the sole right to operate the Franchised Business under the New Franchise Agreement. The Former Franchisee must comply with all agreements that survive the termination, expiration, or transfer of the Former Franchise Agreement. Unless state law prevents it, the Former Franchisee must execute Franchisor's current form of General Release Agreement.
This means a franchisee who has had their agreement terminated cannot continue to represent themselves as an active Crepe De Licious franchisee. They lose all rights to operate under the Crepe De Licious brand, system, and trademarks. This is a standard clause in franchise agreements to protect the brand's integrity and prevent customer confusion.
The new franchisee has sole rights to operate the franchise. The former franchisee must also keep Crepe De Licious informed of their current address and telephone number at all times during the three-year period following the execution of the Agreement.