What is the Development Schedule in the Casa De Corazon Development Agreement?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
When you sign a Development Agreement, you or your affiliates will commit to develop a specified number of Centers within the "Development Territory" according to the Development Schedule. We will determine the size and boundaries of your Development Territory before signing the Development Agreement. The size and boundaries for the Development Territory will vary depending on the number of Centers that we approve you to develop, demographics and population, geographic area, natural boundaries and access to streets and highways, neighborhood character, location and number of competing centers, site availability, and other factors. There is no minimum Development Territory size and the exact size of each Development Territory varies based on the applicable factors. You do not have the right to change your Development Territory. You and we will negotiate the Development Schedule describing the number of Centers that you must develop to keep your development rights and the dates by which you must develop them. You and we will complete the Development Schedule in the Development Agreement before signing it. You will sign our then-current form of Franchise Agreement for each Center you develop and open under the Development Agreement, which may contain materially different terms and conditions than the Franchise Agreement attached to this Disclosure Document as Exhibit F.
For any Center you desire to develop in the Development Territory under your Development Agreement, you must first locate and obtain our approval for the proposed site. We will approve or reject that proposed site based on our then-current standards for franchise sites. Upon approval of the location for the Center, we will complete the Franchise Agreement indicating the address and the Designated Territory granted to you or your affiliate for that Center, but in no event will the Designated Territory be outside the Development Territory.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the Development Schedule is a crucial component of the Development Agreement. When a franchisee signs a Development Agreement with Casa De Corazon, they commit to developing a specific number of centers within a defined "Development Territory." The specifics of this territory, including its size and boundaries, are determined by Casa De Corazon before the agreement is finalized. These boundaries can vary based on factors such as the number of centers approved for development, demographics, population density, geographic features, access to transportation, neighborhood characteristics, the presence of competing centers, and the availability of suitable sites.
The Development Schedule itself is a negotiated element between Casa De Corazon and the franchisee. It outlines the number of centers the franchisee must develop to maintain their development rights and specifies the dates by which these centers must be operational. This schedule is documented within the Development Agreement before it is signed, ensuring both parties are clear on the development obligations.
It's important to note that for each center a franchisee intends to develop within the Development Territory, Casa De Corazon must approve the proposed site. Approval is based on Casa De Corazon's standards for franchise locations at that time. Upon site approval, a Franchise Agreement is completed, specifying the center's address and the Designated Territory. However, the Designated Territory will always be within the broader Development Territory. Failure to adhere to the Development Schedule can result in termination of the Development Agreement, though existing Franchise Agreements will remain in effect.