How long is 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 10 years. The agreement expires on the date when the last center under the development schedule opens, or should have opened, for business. The term can also end if the development agreement is terminated, subject to applicable state law.
This means that a franchisee entering into a development agreement with Casa De Corazon has a 10-year window to develop and open the agreed-upon number of centers. The expiration is tied to the opening date of the final center, incentivizing timely development. The agreement could end sooner if Casa De Corazon or the franchisee terminates the agreement based on the terms outlined in the agreement and in accordance with state laws.
Unlike the franchise agreement, the development agreement with Casa De Corazon does not offer any renewal rights. This is a common practice, as development agreements are designed for a specific development period, after which the franchisee would operate under individual franchise agreements for each center.