Under what circumstances is the Waiver and Release of Claims required for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Crepe de licious business;
WHEREAS, [Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement] or [the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release], and Franchisor has consented to such [transfer/successor franchise agreement/amendment/termination/other reason]; and
WHEREAS, as a condition to Franchisor's consent to [transfer the Agreement/enter into a successor franchise agreement/amend the Agreement/terminate the Agreement/other reason], Releasor has agreed to execute this Release upon the terms and conditions stated below.
NOW, THEREFORE, in consideration of Franchisor's consent, and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, Releasor hereby agrees as follows:
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, a Waiver and Release of Claims is required under specific circumstances related to changes in the franchise agreement or the franchisee's status.
The Waiver and Release of Claims is required when a franchisee notifies Crepe De Licious of their desire to transfer the Franchise Agreement, transfer ownership interest, enter into a successor franchise agreement, or amend the existing agreement. It is also required if the Franchise Agreement is being terminated, or for any other reason that necessitates the waiver and release. Crepe De Licious requires this release as a condition of their consent to the transfer, successor agreement, amendment, or termination.
This requirement ensures that Crepe De Licious is protected from potential future claims arising from the previous franchisee's operation or termination of the franchise. It is a standard legal practice in franchising to secure such releases to maintain clarity and avoid disputes during transitions or terminations.
Specifically, in the event of a transfer, Crepe De Licious also requires general releases from the franchisee and each of their owners as a condition of the transfer. This is in addition to other transfer conditions such as the transferee meeting the then-current standards for new franchisees, paying a transfer fee, signing the current form of franchise agreement, completing initial training, and refurbishing the Restaurant, Kiosk, or Food Truck to current standards.