Under what conditions can a Crepe De Licious franchisee terminate the franchise agreement?
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)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the document mentions conditions under which a Franchise Agreement can be terminated, specifically in the context of transferring the agreement or ownership to a new party.
The FDD outlines a scenario where a franchisee notifies Crepe De Licious of their desire to transfer the agreement, rights, or ownership interest to a transferee, or to enter into a successor franchise agreement, or amend the existing agreement. Alternatively, the agreement might be terminated for another reason. In any of these cases, Crepe De Licious's consent is required for the transfer, successor agreement, amendment, or termination to proceed.
As a condition of Crepe De Licious granting consent, the franchisee (referred to as the 'Releasor') must execute a release agreement. This release is made in consideration of Crepe De Licious's consent to the transfer, successor agreement, amendment, or termination. The Releasor agrees to the terms and conditions outlined in the release, indicating a mutual agreement to end or alter the franchise relationship under specific, agreed-upon terms.
In essence, a Crepe De Licious franchisee can terminate the franchise agreement with the franchisor's consent, often in conjunction with a transfer of the franchise to a new owner or under mutually agreed upon terms, provided that the franchisee executes a release agreement as a condition of that consent. The FDD does not detail all possible reasons for termination, but it highlights the process when a franchisee initiates the request and Crepe De Licious approves it.