What is the length of the development agreement term for Casa De Corazon?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section in | ||
|---|---|---|
| Franchise, Development Agreement, or Other | ||
| Provision | Agreements | Summary |
| a. Length of the franchise term | Franchise Agreement - Section 2(a) Development Agreement - Section 5 | 10 years. Expires on date when last Center under the Development Schedule opens, or should have opened, for business, or the Development Agreement is terminated (subject to applicable state law). |
| b. Renewal or extension of the term | Franchise Agreement - Section 2(b) Development Agreement - None | If you are in good standing and you meet our conditions, you can renew your franchise for an additional 10-year period. There are no renewal rights under the Development Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–43)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the development agreement term lasts for 10 years. The agreement expires on the date when the last center under the development schedule opens, or should have opened, for business. The development agreement can also be terminated, which would end the term.
Unlike the franchise agreement, the development agreement does not offer any renewal rights. This means that once the initial 10-year term is over, or upon the opening (or planned opening) of the final center outlined in the development schedule, the development agreement concludes without an option to extend it.
This aspect is important for prospective Casa De Corazon franchisees considering a multi-unit development strategy. They should carefully consider the development schedule and timeline to ensure it aligns with their long-term business goals, as there is no guarantee of extending the development rights beyond the initial term. Franchisees should discuss with Casa De Corazon the possibilities for future expansion or renewal options beyond the initial development agreement.