Crepe_De_Licious 2025 Franchise FAQ - FDD Ninja

Question 1

How many Crepe De Licious outlets were opened in total during 2024?

Accepted Answer

of Franchised Outlets For Years 2022- 2024

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Delaware | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| California | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 2 | 0 | 0 | 0 | 1 | 3 |
| Georgia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 1 | 1 |
| Michigan | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| New Jersey | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
![](_page_54_Picture_0.jpeg)

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| New York | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Ohio | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| Texas | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Virginia | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Outlets | 2022 | 6 | 1 | 0 | 0 | 0 | 0 | 7 |
|  | 2023 | 7 | 2 | 0 | 0 | 0 | 0 | 9 |
|  | 2024 | 9 | 3 | 0 | 0 | 0 | 4 | 8 |
|  |  |  |  |  |  |  |  |  |
| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired From Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of Year |  |
| Florida | 2022 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 |  |
| Total Outlets | 2022 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 |  |
## Table No.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 2

How many Crepe De Licious outlets were reacquired by the franchisor in 2022?

Accepted Answer

of Franchised Outlets For Years 2022- 2024

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Delaware | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| California | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 2 | 0 | 0 | 0 | 1 | 3 |
| Georgia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 1 | 1 |
| Michigan | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| New Jersey | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
![](_page_54_Picture_0.jpeg)

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| New York | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Ohio | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| Texas | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Virginia | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Outlets | 2022 | 6 | 1 | 0 | 0 | 0 | 0 | 7 |
|  | 2023 | 7 | 2 | 0 | 0 | 0 | 0 | 9 |
|  | 2024 | 9 | 3 | 0 | 0 | 0 | 4 | 8 |
|  |  |  |  |  |  |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 3

How many Crepe De Licious outlets were terminated in all states during 2022?

Accepted Answer

of Franchised Outlets For Years 2022- 2024

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Delaware | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| California | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 2 | 0 | 0 | 0 | 1 | 3 |
| Georgia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 1 | 1 |
| Michigan | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 4

Were any Crepe De Licious outlets reacquired by the franchisor in 2023?

Accepted Answer

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Delaware | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| California | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 2 | 0 | 0 | 0 | 1 | 3 |
| Georgia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 1 | 1 |
| Michigan | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| New Jersey | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 5

In which states did Crepe De Licious open new outlets in 2023?

Accepted Answer

of Franchised Outlets For Years 2022- 2024

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| Delaware | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| California | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
| Florida | 2022 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 2 | 0 | 0 | 0 | 1 | 3 |
| Georgia | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 1 | 0 | 0 | 0 | 1 | 1 |
| Michigan | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| New Jersey | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
![](_page_54_Picture_0.jpeg)

| State | Year | Outlets at Start of the Year | Outlets Opened | Termina- tions | Non- Renewals | Reacquired by Franchisor | Ceased Opera- tions-Other Reasons | Outlets at End of the Year |
|---|---|---|---|---|---|---|---|---|
| New York | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Ohio | 2022 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 0 | 1 |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 | 0 |
| Texas | 2022 | 1 | 1 | 0 | 0 | 0 | 0 | 2 |
|  | 2023 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
|  | 2024 | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
| Virginia | 2022 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2023 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
|  | 2024 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Outlets | 2022 | 6 | 1 | 0 | 0 | 0 | 0 | 7 |
|  | 2023 | 7 | 2 | 0 | 0 | 0 | 0 | 9 |
|  | 2024 | 9 | 3 | 0 | 0 | 0 | 4 | 8 |
|  |  |  |  |  |  |  |  |  |
| State | Year | Outlets at Start of Year | Outlets Opened | Outlets Reacquired From Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets at End of Year |  |
| Florida | 2022 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 |  |
| Total Outlets | 2022 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2023 | 1 | 0 | 0 | 0 | 0 | 1 |  |
|  | 2024 | 1 | 0 | 0 | 0 | 0 | 1 |  |
## Table No.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 6

What is the total estimated low and high range for the initial investment for a Crepe De Licious franchise?

Accepted Answer

## Restaurant

| Type of Expenditure | Amount |  | Method of Payment | When Due | To Whom Payment is to be Paid |
|---|---|---|---|---|---|
|  | Low | High |  |  |  |
| Initial Franchise | $35,000 | $35,000 | Lump sum | Upon signing of | Us |
| Fee(1) |  |  |  | Franchise Agreement |  |
| Territory | $10,000 | $10,000* | Lump Sum | Due before Franchise | Us |
| Reservation Fee(1) |  |  |  | Agreement is signed |  |
| Design Fee(2) | $5,000 | $10,000 | As incurred | Upon ordering designs | Us |
| Mechanical, | $5,000 | $25,000 | As incurred | As agreed | Third Parties |
| Electrical, |  |  |  |  |  |
| Plumbing, and |  |  |  |  |  |
| Architectural |  |  |  |  |  |
| Fees(3) |  |  |  |  |  |
| Real Estate Agent | $10,000 | $15,000 | As incurred | As agreed | Third Parties |
| Fees(4) |  |  |  |  |  |
| Rent, Security Deposit, Utility Deposit(5) | $5,000 | $40,000 | As incurred | As agreed | Landlord, Utility Companies |
| Additional | $650 | $15,000 | As incurred | As agreed | Landlord |
| Storage(5) |  |  |  |  |  |
| Leasehold Improvements(6) | $125,000 | $350,000 | As incurred | As agreed | Landlord, Contractors, Other Suppliers |
| Furniture, Fixtures, | $85,000 | $250,000 | As incurred | As agreed | Approved |
| and Equipment(7) |  |  |  |  | Suppliers |
| Initial Inventory | $15,000 | $25,000 | As incurred | As agreed | Approved |
| and Supplies(8) |  |  |  |  | Suppliers |
![](_page_18_Picture_0.jpeg)

| Type of Expenditure | Amount |  | Method of Payment | When Due | To Whom Payment is to be Paid |
|---|---|---|---|---|---|
|  | Low | High |  |  |  |
| Insurance(9) | $5,000 | $10,000 | As incurred | As agreed | Insurance Providers / Approved Suppliers |
| Business Licenses | $7,500 | $20,000 | As incurred | As agreed | Third Parties |
| and Permits(10) |  |  |  |  |  |
| Professional | $5,000 | $10,000 | As incurred | As agreed | Attorney, |
| Fees(11) |  |  |  |  | Accountant |
| Signage(12) | $10,000 | $25,000 | As incurred | As agreed | Approved Suppliers |
| Office Equipment | $3,500 | $5,000 | As incurred | As agreed | Us, Approved |
| and Supplies(13) |  |  |  |  | Suppliers |
| Grand Opening | $2,500 | $5,000 | As incurred | As agreed | Approved |
| Promotion(14) |  |  |  |  | Suppliers |
| Uniforms(15) | $800 | $1,200 | As incurred | As agreed | Approved Suppliers |
| Initial Training | $2,500 | $10,000 | As incurred | As agreed | Airlines, Hotels, |
| Expenses(16) |  |  |  |  | Restaurants, etc.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)

Question 7

What was the total number of Crepe De Licious outlets at the end of 2023?

Accepted Answer

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---| 
| Franchised | 2022 | 3 | 7 | +4 |
|  | 2023 | 7 | 9 | +2 |
|  | 2024 | 9 | 8 | -1 |
| Company-Owned | 2022 | 1 | 1 | 0 |
|  | 2023 | 1 | 1 | 0 |
|  | 2024 | 1 | 1 | 0 |
| Total Outlets | 2022 | 4 | 8 | +4 |
|  | 2023 | 8 | 10 | +2 |
|  | 2024 | 10 | 9 | -1 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 8

What was the total number of Crepe De Licious outlets at the start of 2023?

Accepted Answer

| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 3 | 7 | +4 |
|  | 2023 | 7 | 9 | +2 |
|  | 2024 | 9 | 8 | -1 |
| Company-Owned | 2022 | 1 | 1 | 0 |
|  | 2023 | 1 | 1 | 0 |
|  | 2024 | 1 | 1 | 0 |
| Total Outlets | 2022 | 4 | 8 | +4 |
|  | 2023 | 8 | 10 | +2 |
|  | 2024 | 10 | 9 | -1 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 9

What is the total projected number of new franchised Crepe De Licious outlets expected to open in the next fiscal year?

Accepted Answer

| State          | Franchise Agreements Signed But Outlet Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company-Owned Outlets in the Next Fiscal Year |
|----------------|------------------------------------------------------|----------------------------------------------------------------|-------------------------------------------------------------------|
| California     | 0                                                    | 1                                                              | 0                                                                 |
| Florida        | 1                                                    | 2                                                              | 1                                                                 |
| Georgia        | 0                                                    | 1                                                              | 0                                                                 |
| Illinois       | 0                                                    | 0                                                              | 0                                                                 |
| Michigan       | 0                                                    | 1                                                              | 0                                                                 |
| New York       | 1                                                    | 2                                                              | 0                                                                 |
| New Jersey     | 1                                                    | 1                                                              | 0                                                                 |
| North Carolina | 0                                                    | 0                                                              | 0                                                                 |
| Ohio           | 0                                                    | 0                                                              | 0                                                                 |
| South Carolina | 0                                                    | 0                                                              | 0                                                                 |
| Texas          | 0                                                    | 1                                                              | 0                                                                 |
| Totals         | 3                                                    | 9                                                              | 1                                                                 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 10

What is the total projected number of new franchised Crepe De Licious outlets to open in the next fiscal year?

Accepted Answer

| State          | Franchise Agreements Signed But Outlet Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company-Owned Outlets in the Next Fiscal Year |
|----------------|------------------------------------------------------|----------------------------------------------------------------|-------------------------------------------------------------------|
| California     | 0                                                    | 1                                                              | 0                                                                 |
| Florida        | 1                                                    | 2                                                              | 1                                                                 |
| Georgia        | 0                                                    | 1                                                              | 0                                                                 |
| Illinois       | 0                                                    | 0                                                              | 0                                                                 |
| Michigan       | 0                                                    | 1                                                              | 0                                                                 |
| New York       | 1                                                    | 2                                                              | 0                                                                 |
| New Jersey     | 1                                                    | 1                                                              | 0                                                                 |
| North Carolina | 0                                                    | 0                                                              | 0                                                                 |
| Ohio           | 0                                                    | 0                                                              | 0                                                                 |
| South Carolina | 0                                                    | 0                                                              | 0                                                                 |
| Texas          | 0                                                    | 1                                                              | 0                                                                 |
| Totals         | 3                                                    | 9                                                              | 1                                                                 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 53–57)

Question 11

According to the Crepe De Licious System Protection Agreement, what is the relationship between the Franchisee Territory and the Restricted Territory?

Accepted Answer

*"Franchisee Territory"* means the territory granted to you pursuant to a franchise agreement with us.

*"Restricted Territory"* means the geographic area within: (i) a 25-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee); and (ii) a 25 mile radius from all other Crepe de licious businesses that are operating or under construction as of the beginning of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within a 12-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee).

You agree not to unfairly compete with us during the Restricted Period by engaging in any Prohibited Activities; provided, however, that the Prohibited Activity relating to having an interest in a Competitive Business will only apply with respect to a Competitive Business that is located within or provides competitive goods or services to customers who are located within the Restricted Territory.

Source: Item 22 — CONTRACTS (FDD page 57)

Question 12

What is the connection between the trademarks licensed to Crepe De Licious in Item 13 and the restrictions on sources of products and services outlined in Item 8?

Accepted Answer

You must follow our rules when using the Marks. You cannot use our name or Mark as part of a corporate name or with modifying words, designs, or symbols unless you receive our prior written consent. You must indicate to the public in any contract, advertisement, and with a conspicuous sign in your Crepe de licious Business that you are an independently-owned and operated licensed franchisee of Crepe de licious Holding USA, Inc. You may not use the Marks in the sale of unauthorized products or services, or in any manner we do not authorize. You may not use the Marks in any advertising for the transfer, sale, or other disposition of the Crepe de licious Business, or any interest in the Franchise. All rights and goodwill from the use of the Marks accrue to us.

Question 13

What is the connection between the trademarks licensed to Crepe De Licious in Item 13, the restrictions on sources of products and services outlined in Item 8, and the franchisee's obligations as described in Item 9?

Accepted Answer

[Item 13: TRADEMARKS]

All required affidavits have been filed for the registered Marks. There are no effective adverse material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, and no pending infringement, opposition, or cancellation proceedings or material litigation involving the Marks. Except for the Trademark License, no agreement significantly limits our right to use or license the Marks in any manner material to the Crepe de licious Business. We do not know of any superior prior rights or infringing uses that could materially affect your use of the trademarks. We do not have a federal registration for our principal trademark. Therefore, our trademark does not have many legal benefits and rights as a federally registered trademark.

You must follow our rules when using the Marks. You cannot use our name or Mark as part of a corporate name or with modifying words, designs, or symbols unless you receive our prior written consent. You must indicate to the public in any contract, advertisement, and with a conspicuous sign in your Crepe de licious Business that you are an independently-owned and operated licensed franchisee of Crepe de licious Holding USA, Inc. You may not use the Marks in the sale of unauthorized products or services, or in any manner we do not authorize. You may not use the Marks in any advertising for the transfer, sale, or other disposition of the Crepe de licious Business, or any interest in the Franchise. All rights and goodwill from the use of the Marks accrue to us.

You must prominently display the Marks on or with franchise posters and displays, service contracts, stationery, other forms we designate, and in the manner we prescribe; to give any notices of trade and service mark registrations and copyrights that we specify; and to obtain any fictitious or assumed name registrations that may be required under applicable law.

[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]

## **ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES**

#### Standards and Specifications

You must operate your Crepe de licious Franchise in strict conformity with the methods, standards, and specifications we list in our proprietary and confidential operating manual ("Operations Manual"), which may exist in various parts, locations, and formats, and may include a combination of audio, video, written material, electronic media, website content, and/or software components. You must not: (i) deviate

![](_page_25_Picture_0.jpeg)

from these methods, standards, and specifications without our prior written consent; or (ii) otherwise operate in any manner which reflects adversely on our Marks or the System. If you use any unapproved item or service at your Crepe de licious Franchise, you will be required to pay the Unauthorized Product or Service Fee to Us.

Our Operations Manual states our standards, specifications, and guidelines for all products and services we require you to obtain in establishing and operating your Crepe de licious Franchise. We will notify you of new or modified standards, specifications, and guidelines through periodic amendments or supplements to the Operations Manual or through written communication (including electronic communication). We will issue copies of our standards and specifications to you and approved and proposed suppliers, unless these standards and specifications contain our confidential information.

You must purchase, install, maintain in sufficient supply, and use, only fixtures, furnishings, equipment, signs, and supplies that conform to the standards and specifications described in the Operations Manual or otherwise in writing.

Question 14

Considering the lack of financing from Crepe De Licious in Item 10, how does this affect a franchisee's ability to meet the initial franchise fee (Item 5), the design fee (Item 6), and the estimated initial investment (Item 7)?

Accepted Answer

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

![](_page_22_Picture_0.jpeg)

estimates are based on our experience, the experience of our affiliates, and our current requirements for Crepe de licious Franchises. The factors underlying our estimates may vary, depending on several variables, and the actual investment you make in developing and opening your Crepe de licious Franchise may be greater or less than the estimates given, depending upon the location of your Crepe de licious Business and current relevant market conditions. Your costs will also depend on factors such as how well you follow our methods and procedures; your management skills; your business experience and capabilities; local economic conditions; the local market for our products and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.

[Item 5: INITIAL FEES]

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion.

Question 15

Considering the lack of financing from Crepe De Licious (Item 10), how does this affect a franchisee's ability to meet the initial franchise fee (Item 5), the design fee (Item 6), the estimated initial investment (Item 7), and adhere to the standards and specifications (Item 8)?

Accepted Answer

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

![](_page_22_Picture_0.jpeg)

estimates are based on our experience, the experience of our affiliates, and our current requirements for Crepe de licious Franchises. The factors underlying our estimates may vary, depending on several variables, and the actual investment you make in developing and opening your Crepe de licious Franchise may be greater or less than the estimates given, depending upon the location of your Crepe de licious Business and current relevant market conditions. Your costs will also depend on factors such as how well you follow our methods and procedures; your management skills; your business experience and capabilities; local economic conditions; the local market for our products and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.

- 1.

Initial Franchise Fee.

You must pay us an initial franchise fee to purchase a franchise.

The initial franchise fee is payment for all our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business.

See Item 5 for additional information about your Initial Franchise Fee and the Territory Reservation Fee. *Because the Territory Reservation Fee is credited towards the Initial Franchise Fee if you purchase a Franchise and sign a Franchise Agreement, we have not calculated it as a separate fee from the Initial Franchise Fee.

- 2.

Design Fee.

We provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck.

You must pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business.

This fee will vary depending on the size and complexity of the design.

- 3.

Mechanical, Electrical, Plumbing, and Architectural Fees.

This estimate covers the mechanical, electrical, plumbing, and architectural costs and fees that you will incur in constructing or remodeling your Restaurant or Kiosk.

- 4.
[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]
---

- 10.

Business Licenses and Permits.

You must obtain the required permits and licenses that are required by your city, county, and state to operate your Crepe de licious Business.

- 11.

Professional Fees.

You may incur legal fees, accounting fees, and other professional fees in order to incorporate your business, perform all necessary tax filings, and perform other tasks such as establishing a general ledger, tax reports, and payroll deposits.

We strongly recommend that you hire a lawyer, accountant, or other professional to advise you on this Franchise offering.

Rates for professionals can vary significantly based on area and experience.

- 12.

Signage.

This estimate is for the cost of the interior and/or exterior signs you will need for your Restaurant, Kiosk, or Food Truck.

- 13.

Office Equipment and Supplies.

You must purchase our specified computer hardware, including our designated point-of-sale system and other computer hardware, as well as business stationery and certain other related items necessary to operate and manage your Crepe de licious Business in a professional manner according to our System standards.

See Item 11 for additional information.

- 14.

Grand Opening Promotion.

You must spend at least $2,500 on a grand opening advertising campaign that meets our standards and specifications.

This must be spent before your Restaurant or Kiosk opens and during its first 90 days of operation.

The Grand Opening Promotion is not applicable to any Food Truck Franchised Business.

- 15.

Uniforms.

The uniforms consist of aprons, hats, chef jackets, and shirts.

- 16.

Initial Training Expenses.

We provide training at our training center in Concord, Ontario, Canada or at another location designated by us.

You must pay for airfare, meals, transportation costs, lodging, and incidental expenses for all initial training program attendees.

Initial training is provided at no charge for up

![](_page_24_Picture_0.jpeg)

to three people, which must include you and your designated manager, if applicable; if additional initial training is required, or more people must be trained, an additional fee will be assessed.

- 17.

POS Set-Up Fee.

---
[Item 5: INITIAL FEES]

## **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of $10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of $250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

---
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

- 3 Issue and modify System standards for Crepe de licious Franchises. We may periodically modify System standards, and those modifications may require you to invest additional capital in the Crepe de licious Franchise and/or incur higher income expenses (See Franchise Agreement – Section 9.04).
[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

to three people, which must include you and your designated manager, if applicable; if additional initial training is required, or more people must be trained, an additional fee will be assessed.

- 17.

POS Set-Up Fee.

You must pay a one-time set-up fee of $800 per POS system, and you are required to purchase one to two POS systems.

The high estimate includes the POS Set-Up Fees for two POS systems.

Question 16

Considering the lack of financing from Crepe De Licious (Item 10), how does this affect a franchisee's ability to meet the initial franchise fee (Item 5), the design fee (Item 6), the estimated initial investment (Item 7), adhere to the standards and specifications (Item 8), and fulfill their obligations (Item 9)?

Accepted Answer

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items.

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of $10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt,"

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of $250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion.

Question 17

Considering the lack of financing from Crepe De Licious (Item 10), how does this affect the franchisee's ability to meet the standards and specifications (Item 8) and fulfill their obligations (Item 9)?

Accepted Answer

Specifications

You must operate your Crepe de licious Franchise in strict conformity with the methods, standards, and specifications we list in our proprietary and confidential operating manual ("Operations Manual"), which may exist in various parts, locations, and formats, and may include a combination of audio, video, written material, electronic media, website content, and/or software components. You must not: (i) deviate

![](_page_25_Picture_0.jpeg)

from these methods, standards, and specifications without our prior written consent; or (ii) otherwise operate in any manner which reflects adversely on our Marks or the System. If you use any unapproved item or service at your Crepe de licious Franchise, you will be required to pay the Unauthorized Product or Service Fee to Us.

Our Operations Manual states our standards, specifications, and guidelines for all products and services we require you to obtain in establishing and operating your Crepe de licious Franchise. We will notify you of new or modified standards, specifications, and guidelines through periodic amendments or supplements to the Operations Manual or through written communication (including electronic communication). We will issue copies of our standards and specifications to you and approved and proposed suppliers, unless these standards and specifications contain our confidential information.

You must purchase, install, maintain in sufficient supply, and use, only fixtures, furnishings, equipment, signs, and supplies that conform to the standards and specifications described in the Operations Manual or otherwise in writing.

You must use the computer programs and related materials developed for use in the operation of Crepe de licious Franchises. The Software (defined in Item 11) includes the POS system software. You must pay us a technology fee for website hosting and other services. You must pay a separate license fee for the POS software this may be direct to the POS vendor or paid to us, as determined by us. The purchase of the Software license may include technical support.

Question 18

Considering the lack of financing from Crepe De Licious (Item 10), how might a franchisee's ability to meet obligations in Item 9 be affected, and how does this relate to the estimated initial investment in Item 7?

Accepted Answer

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

Question 19

Considering the lack of financing from Crepe De Licious (Item 10), how does this impact a franchisee's ability to pay the initial franchise fee (Item 5) and meet the estimated initial investment (Item 7)?

Accepted Answer

|  |## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

![](_page_22_Picture_0.jpeg)

estimates are based on our experience, the experience of our affiliates, and our current requirements for Crepe de licious Franchises. The factors underlying our estimates may vary, depending on several variables, and the actual investment you make in developing and opening your Crepe de licious Franchise may be greater or less than the estimates given, depending upon the location of your Crepe de licious Business and current relevant market conditions. Your costs will also depend on factors such as how well you follow our methods and procedures; your management skills; your business experience and capabilities; local economic conditions; the local market for our products and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.

- 1. Initial Franchise Fee. You must pay us an initial franchise fee to purchase a franchise. The initial franchise fee is payment for all our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business. See Item 5 for additional information about your Initial Franchise Fee and the Territory Reservation Fee. \*Because the Territory Reservation Fee is credited towards the Initial Franchise Fee if you purchase a Franchise and sign a Franchise Agreement, we have not calculated it as a separate fee from the Initial Franchise Fee.
- 2. Design Fee. We provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck. You must pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design.
- 3. Mechanical, Electrical, Plumbing, and Architectural Fees. This estimate covers the mechanical, electrical, plumbing, and architectural costs and fees that you will incur in constructing or remodeling your Restaurant or Kiosk.
- 4. Real Estate Agent Fees. If you use the services of a real estate agent to purchase or lease real estate, you may be required to pay a fee to your real estate agent based on any agreement you sign with your real estate agent.
- 5. Rent, Security Deposit, Utility Deposit and Additional Storage.

Question 20

Considering the lack of financing from Crepe De Licious (Item 10), how does this impact a franchisee's ability to pay the initial franchise fee (Item 5), meet the estimated initial investment (Item 7), adhere to the standards and specifications (Item 8), and fulfill their obligations (Item 9)?

Accepted Answer

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items.

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion.

Inform you of mandatory specifications, standards, and procedures for the operation of your Crepe de licious Franchise, as described in Item 8 (See Franchise Agreement – Section 7.12).

Issue and modify System standards for Crepe de licious Franchises. We may periodically modify System standards, and those modifications may require you to invest additional capital in the Crepe de licious Franchise and/or incur higher income expenses (See Franchise Agreement – Section 9.04).

Question 21

Considering the lack of financing from Crepe De Licious (Item 10), how might the initial franchise fee (Item 5) and estimated investment (Item 7) impact a franchisee's ability to secure funding?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of \$250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between \$5,000 and \$10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

#### Fee Deferral

Some states have imposed a fee deferral. Please refer to the State Addendum in Exhibit E to the Franchise Disclosure Document.

#### Area Development Fee

If you are going to be an Area Developer, then you will sign an Area Development Agreement and pay us an area development fee (the "Area Development Fee"). The amount of the Area Development Fee will be calculated by multiplying \$35,000 times the number of Crepe Delicious Restaurants to be developed under the Area Development Agreement. The Area Development Fee will be due in a lump sum payment upon the signing of an Area Development Agreement. The Area Development Fee is fully earned and nonrefundable in consideration of administrative and other expenses we incur in entering into the Area Development Agreement, and for our lost or deferred opportunities to enter into the Area Development Agreement with others, regardless of whether you enter into any Franchise Agreements for Franchised Restaurants to be developed. The Area Development Fee is imposed uniformly.

## **ITEM 6 OTHER FEES**

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees. |  |
|  |  |
![](_page_12_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee(2) | 6% of Gross Revenues | 5th day of each month for the immediately preceding month | The “Royalty Fee” is based on “Gross Revenues” during the previous period. Your Royalty Fee is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. |
| Advertising Fee | 3% of Gross Revenues | Same as Royalty Fee | We charge this fee for the creation of a national advertising fund. The advertising fee is discussed in Item 11. |![](_page_13_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Convention Fee(4) | Then-current fee (currently up to $500 per person) | As incurred | Payable to us to help defray the cost of your attendance at any annual convention that we choose to hold. This fee is due regardless of whether or not you attend our annual convention in any given year. |
| Transfer Fee | $5,000 if transferring to one of our existing franchisees;

Question 22

Considering the lack of financing options from Crepe De Licious in Item 10, what are the potential financial implications for a franchisee as indicated by the estimated initial investment in Item 7?

Accepted Answer

|  |## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

![](_page_22_Picture_0.jpeg)

estimates are based on our experience, the experience of our affiliates, and our current requirements for Crepe de licious Franchises. The factors underlying our estimates may vary, depending on several variables, and the actual investment you make in developing and opening your Crepe de licious Franchise may be greater or less than the estimates given, depending upon the location of your Crepe de licious Business and current relevant market conditions. Your costs will also depend on factors such as how well you follow our methods and procedures; your management skills; your business experience and capabilities; local economic conditions; the local market for our products and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.

- 1. Initial Franchise Fee. You must pay us an initial franchise fee to purchase a franchise. The initial franchise fee is payment for all our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business. See Item 5 for additional information about your Initial Franchise Fee and the Territory Reservation Fee.

Question 23

Considering the lack of financing options from Crepe De Licious in Item 10, what are the potential financial implications for a franchisee as indicated by the estimated initial investment in Item 7, and the initial franchise fee in Item 5?

Accepted Answer

[Item 5: INITIAL FEES]

## **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

estimates are based on our experience, the experience of our affiliates, and our current requirements for Crepe de licious Franchises. The factors underlying our estimates may vary, depending on several variables, and the actual investment you make in developing and opening your Crepe de licious Franchise may be greater or less than the estimates given, depending upon the location of your Crepe de licious Business and current relevant market conditions. Your costs will also depend on factors such as how well you follow our methods and procedures; your management skills; your business experience and capabilities; local economic conditions; the local market for our products and services; the prevailing wage rates; competition; and sales levels reached during your initial phase of business operations. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.

- 2.

Design Fee.

We provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck.

You must pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business.

This fee will vary depending on the size and complexity of the design.

- 3.

Mechanical, Electrical, Plumbing, and Architectural Fees.

This estimate covers the mechanical, electrical, plumbing, and architectural costs and fees that you will incur in constructing or remodeling your Restaurant or Kiosk.

- 10.

Business Licenses and Permits.

You must obtain the required permits and licenses that are required by your city, county, and state to operate your Crepe de licious Business.

- 11.

Professional Fees.

You may incur legal fees, accounting fees, and other professional fees in order to incorporate your business, perform all necessary tax filings, and perform other tasks such as establishing a general ledger, tax reports, and payroll deposits.

- 12.

Signage.

This estimate is for the cost of the interior and/or exterior signs you will need for your Restaurant, Kiosk, or Food Truck.

- 13.

Office Equipment and Supplies.

You must purchase our specified computer hardware, including our designated point-of-sale system and other computer hardware, as well as business stationery and certain other related items necessary to operate and manage your Crepe de licious Business in a professional manner according to our System standards.

- 14.

Grand Opening Promotion.

You must spend at least $2,500 on a grand opening advertising campaign that meets our standards and specifications.

This must be spent before your Restaurant or Kiosk opens and during its first 90 days of operation.

- 15.

Uniforms.

The uniforms consist of aprons, hats, chef jackets, and shirts.

- 16.

Initial Training Expenses.

We provide training at our training center in Concord, Ontario, Canada or at another location designated by us.

You must pay for airfare, meals, transportation costs, lodging, and incidental expenses for all initial training program attendees.

- 17.

POS Set-Up Fee.

You must pay a one-time set-up fee of $800 per POS system, and you are required to purchase one to two POS systems.

- 18.

Digital Signage Displays and Set-Up, License and Maintenance Fees.

This estimate includes from one to ten televisions for digital signage displays.

- 19.

Miscellaneous Opening Expenses.

This estimate covers miscellaneous expenses that you may incur before your Crepe de licious Business first opens for business.

- 20.

Additional Funds.

These amounts represent our estimate of the amount needed to cover your expenses for the initial three-month start-up phase of your Crepe de licious Business.

For purposes of this disclosure, we estimated the start-up phase to be three months from the date your Crepe de licious Business opens for business.

Our estimates are based on our experience, the experience of our affiliates, and our current requirements for Crepe de licious Franchises.

These figures are estimates, and we cannot guarantee that you will not have additional expenses starting your Crepe de licious Business.

You must bear any deviation or escalation in costs from the estimates that we have given.

Your costs will depend on factors such as: how well you follow our methods and procedures; your management skills, experience, and business acumen; local economic conditions; the local market for your products and services; the prevailing wage rate; competition; the sales level reached during the start-up period; and the size of your Crepe de licious Business.

Additional funds for the operation of your Crepe de licious Franchise will be required after the first three months of operation if sales produced by the Crepe de licious Franchise are not sufficient to produce positive cash flow.

Question 24

Considering the lack of financing options from Crepe De Licious in Item 10, what are the potential financial implications for a franchisee as indicated by the estimated initial investment in Item 7, the initial franchise fee in Item 5, and the potential design fee in Item 6?

Accepted Answer

[Item 5: INITIAL FEES]

## **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

You must spend at least $2,500 on a grand opening advertising campaign that meets our standards and specifications.

You must pay a one-time set-up fee of $800 per POS system, and you are required to purchase one to two POS systems.

Question 25

How does the Crepe De Licious franchisor's assistance (Item 11) with site selection relate to the territory granted (Item 12) and the franchisee's obligations regarding the Approved Location (Item 12)?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;
- 5 to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Restaurant, Kiosk, or Food Truck operated by you;
- 6 to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Crepe de licious Restaurant, Kiosk, or Food Truck, wherever located;
- 7 to acquire and convert to the System operated by us, any businesses offering services and products similar to offered by Crepe de licious Restaurants, Kiosks, and Food Trucks, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory, provided that in such situations the newly acquired businesses may not operate under the Marks in the Territory;

![](_page_41_Picture_0.jpeg)

8 to implement multi-area marketing programs, which may allow us or others to solicit or sell to customers anywhere.

Question 26

How does the Crepe De Licious franchisor's assistance (Item 11) with site selection relate to the territory granted (Item 12), the franchisee's obligations regarding the Approved Location (Item 12), and the standards and specifications (Item 8)?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;

Question 27

How does the Crepe De Licious franchisor's assistance (Item 11) with site selection relate to the territory granted (Item 12), the franchisee's obligations regarding the Approved Location (Item 12), the standards and specifications (Item 8), and the trademarks they are licensed to use (Item 13)?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;
- 5 to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Restaurant, Kiosk, or Food Truck operated by you;

Question 28

How does the Crepe De Licious franchisor's assistance with site selection (Item 11) interact with the territory granted to the franchisee (Item 12)?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;
- 5 to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Restaurant, Kiosk, or Food Truck operated by you;
- 6 to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Crepe de licious Restaurant, Kiosk, or Food Truck, wherever located;
- 7 to acquire and convert to the System operated by us, any businesses offering services and products similar to offered by Crepe de licious Restaurants, Kiosks, and Food Trucks, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory, provided that in such situations the newly acquired businesses may not operate under the Marks in the Territory;

![](_page_41_Picture_0.jpeg)

8 to implement multi-area marketing programs, which may allow us or others to solicit or sell to customers anywhere.

Question 29

How does the Crepe De Licious franchisor's assistance with site selection (Item 11) interact with the territory granted to the franchisee (Item 12), and the franchisee's obligations regarding the Approved Location (Item 12)?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;
- 5 to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Restaurant, Kiosk, or Food Truck operated by you;
- 6 to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Crepe de licious Restaurant, Kiosk, or Food Truck, wherever located;
- 7 to acquire and convert to the System operated by us, any businesses offering services and products similar to offered by Crepe de licious Restaurants, Kiosks, and Food Trucks, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory, provided that in such situations the newly acquired businesses may not operate under the Marks in the Territory;

![](_page_41_Picture_0.jpeg)

8 to implement multi-area marketing programs, which may allow us or others to solicit or sell to customers anywhere. We also reserve the right to issue mandatory policies to coordinate such multi-area marketing programs.

Question 30

How does the Crepe De Licious franchisor's assistance with site selection in Item 11 relate to the territory restrictions outlined in Item 12?

Accepted Answer

tract before you sign it.

The Food Truck must always operate within the Territory. We reserve the right to limit specific Sites for the Food Truck to Operate within the Territory at our sole discretion.

Our site selection criteria and our approval of a site do not constitute a representation or warranty as to the suitability of any particular site for a Restaurant, Kiosk, Food Truck or as to any other purpose. Our approval only indicates that we believe that the site falls within our minimum site selection criteria.

We will consult with you on our current site selection guidelines and provide other site selection counseling, as we deem advisable. The factors we consider in approving sites include location, size, suitability, and other factors that may be relevant to your market. Typically, Crepe de licious Businesses are located in busy malls and outside the food court in a quieter, more relaxed atmosphere. Although we will consult with you on your site and require your site be subject to our final authorization, you have the ultimate responsibility in choosing, obtaining, and developing the site for your Restaurant, Kiosk, or Food Truck.

#### Under Area Development Agreement:

For each proposed site for a Franchised Restaurant to be developed under the Area Development Agreement, you must also submit to us the required documents as detailed in the Manuals. We will approve or disapprove, in our sole discretion, the location for the Franchised Restaurant. You must, on terms that we deem acceptable, secure a lease or a binding agreement for the purchase of the approved site.

Under the Franchise Agreement and Area Development Agreement, we will be deemed to have disapproved a proposed location unless we have expressly approved it in writing. In approving a location for the Franchised Restaurant, we consider the location, neighborhood, traffic patterns, visibility, parking facilities, size, lease, and zoning. If you do not locate and secure an acceptable site within the required time frames, you will be in default of your agreement with us for which we may terminate your agreement.

Under the Franchise Agreement and Area Development Agreement, our approval (or failure to disapprove) of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Franchised Restaurant or for any other purpose, or as to any expected level of sales, revenues or profits. Approval by us of the site indicates only that the site meets the minimum requirements for a Crepe Delicious Restaurant site.

#### *Schedule for Opening*

The typical length of time between signing the Franchise Agreement and opening the Restaurant, Kiosk, or Food Truck can vary from five to 12 months. You must schedule the opening of your Crepe de licious Business within 12 months after signing the Franchise Agreement. If you do not open your Crepe de licious Business within 12 months after you sign the Franchise Agreement, you will be required to pay us an Opening Extension Fee until you open. Some factors which may affect this timing are your ability to acquire a location through lease or purchase negotiations, your ability to secure any necessary financing, your ability to comply with local zoning and other ordinances, your ability to obtain any necessary permits and

![](_page_31_Picture_0.jpeg)

certifications, the timing of the delivery of equipment, inventory, and supplies; the time to convert, renovate, or build-out your Restaurant or Kiosk; completing our Initial Training Program; and hiring and training a manager and other employees. You must comply with all ordinances, building codes, and permit requirements, and with any lease requirements and restrictions.

You may not open your Crepe de licious Business until: (1) we notify you in writing that all of your pre-opening obligations have been fulfilled; (2) you have completed the Initial Training Program to our satisfaction; (3) all amounts due to us have been paid; (4) we have been furnished with copies of all insurance policies and certificates required by the Franchise Agreement, or other documentation of insurance coverage and payment of premiums that we request; (5) you notify us that all approvals and conditions stated in the Franchise Agreement have been met; (6) you have received all required permits and licenses; and (7) you have ordered, received, and installed your fixtures, equipment, supplies, inventory, and computer system. You must be prepared to begin operating your Crepe de licious Business immediately after we state your Crepe de licious Business is ready for opening.

Question 31

How does the Crepe De Licious franchisor's assistance with site selection in Item 11 relate to the territory restrictions outlined in Item 12, and the franchisee's obligations regarding site selection in Item 9?

Accepted Answer

y at our sole discretion.

Our site selection criteria and our approval of a site do not constitute a representation or warranty as to the suitability of any particular site for a Restaurant, Kiosk, Food Truck or as to any other purpose. Our approval only indicates that we believe that the site falls within our minimum site selection criteria.

We will consult with you on our current site selection guidelines and provide other site selection counseling, as we deem advisable. The factors we consider in approving sites include location, size, suitability, and other factors that may be relevant to your market. Typically, Crepe de licious Businesses are located in busy malls and outside the food court in a quieter, more relaxed atmosphere. Although we will consult with you on your site and require your site be subject to our final authorization, you have the ultimate responsibility in choosing, obtaining, and developing the site for your Restaurant, Kiosk, or Food Truck.

#### Under Area Development Agreement:

For each proposed site for a Franchised Restaurant to be developed under the Area Development Agreement, you must also submit to us the required documents as detailed in the Manuals. We will approve or disapprove, in our sole discretion, the location for the Franchised Restaurant. You must, on terms that we deem acceptable, secure a lease or a binding agreement for the purchase of the approved site.

Under the Franchise Agreement and Area Development Agreement, we will be deemed to have disapproved a proposed location unless we have expressly approved it in writing. In approving a location for the Franchised Restaurant, we consider the location, neighborhood, traffic patterns, visibility, parking facilities, size, lease, and zoning. If you do not locate and secure an acceptable site within the required time frames, you will be in default of your agreement with us for which we may terminate your agreement.

Under the Franchise Agreement and Area Development Agreement, our approval (or failure to disapprove) of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Franchised Restaurant or for any other purpose, or as to any expected level of sales, revenues or profits. Approval by us of the site indicates only that the site meets the minimum requirements for a Crepe Delicious Restaurant site.

#### *Schedule for Opening*

The typical length of time between signing the Franchise Agreement and opening the Restaurant, Kiosk, or Food Truck can vary from five to 12 months. You must schedule the opening of your Crepe de licious Business within 12 months after signing the Franchise Agreement. If you do not open your Crepe de licious Business within 12 months after you sign the Franchise Agreement, you will be required to pay us an Opening Extension Fee until you open. Some factors which may affect this timing are your ability to acquire a location through lease or purchase negotiations, your ability to secure any necessary financing, your ability to comply with local zoning and other ordinances, your ability to obtain any necessary permits and

![](_page_31_Picture_0.jpeg)

certifications, the timing of the delivery of equipment, inventory, and supplies; the time to convert, renovate, or build-out your Restaurant or Kiosk; completing our Initial Training Program; and hiring and training a manager and other employees. You must comply with all ordinances, building codes, and permit requirements, and with any lease requirements and restrictions.

Question 32

How does the Crepe De Licious franchisor's pre-opening obligations in Item 11 relate to the franchisee's obligations regarding site selection in Item 9?

Accepted Answer

Before you open your Crepe de licious Franchise, we (or our designee(s)) will provide the following assistance and services to you:

- 1 Provide site selection guidelines and criteria, and provide site selection assistance to determine an acceptable location for your Crepe de licious Franchise (See Franchise Agreement – Section 7.01).
- 2 Review your lease agreement for the Restaurant or Kiosk to ensure that its terms contain our required provisions and otherwise meets our minimum standards (See Franchise Agreement – Section 7.02).
- 3 Review and authorize a final lease for your Restaurant or Kiosk (See Franchise Agreement – Section 4.02).

Question 33

How does the Crepe De Licious franchisor's pre-opening obligations in Item 11 relate to the franchisee's obligations regarding site selection in Item 9, and the territory they are granted in Item 12?

Accepted Answer

Before you open your Crepe de licious Franchise, we (or our designee(s)) will provide the following assistance and services to you:

- 1 Provide site selection guidelines and criteria, and provide site selection assistance to determine an acceptable location for your Crepe de licious Franchise (See Franchise Agreement – Section 7.01).
- 2 Review your lease agreement for the Restaurant or Kiosk to ensure that its terms contain our required provisions and otherwise meets our minimum standards (See Franchise Agreement – Section 7.02).
- 3 Review and authorize a final lease for your Restaurant or Kiosk (See Franchise Agreement – Section 4.02).

| Obligation | Section in Franchise Agreement | Section in Area Development Agreement | Item in Disclosure Document |
|---|---|---|---|
| a. Site selection and acquisition/lease | Sections 4.01 and 4.02 | 3.2, 3.3, and 5.1 | Item 6, 7 and 11 |

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system.

Question 34

If a Crepe De Licious franchisee fails to open their business within 12 months, as mentioned in Item 6, how does this affect their initial investment as described in Item 7?

Accepted Answer

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees. |  |

Question 35

If a Crepe De Licious franchisee fails to open their business within 12 months, as mentioned in Item 6, how does this affect their initial investment as described in Item 7, and their obligations regarding site selection in Item 9?

Accepted Answer

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees. |  |

Question 36

What are the implications of Item 10, which states that Crepe De Licious does not offer financing, in relation to the estimated initial investment costs outlined in Item 7?

Accepted Answer

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## Notes:

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

Question 37

How does the initial franchise fee for Crepe De Licious in Item 5 compare to the potential design fee mentioned in Item 6?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee.

Question 38

How does the initial franchise fee for Crepe De Licious in Item 5 compare to the potential design fee mentioned in Item 6, and the estimated initial investment in Item 7?

Accepted Answer

[Item 5: INITIAL FEES]

## **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of $10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of $250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

## **ITEM 7 ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT**

The following tables describe the estimated initial investment for a single Crepe Delicious unit. We have not included a separate table for the initial investment if you sign an Area Development Agreement, since it will be substantially similar to the opening of a single franchise unit. As described in Item 5, on execution of an Area Development Agreement you must pay us $35,000 multiplied by the number of Crepe Delicious Restaurants to be developed under the Area Development Agreement. Other than the Area Development Fee, the following estimated initial investment expenditures will apply, subject to potential increases over time and other changes in circumstances. If you sign a Area Development Agreement, your professional fees, such as in the category of legal and financial, may be higher and cannot be predicted by us.

#### Restaurant

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

You must pay a one-time set-up fee of $800 per POS system, and you are required to purchase one to two POS systems.

Question 39

How does the initial franchise fee for Crepe De Licious in Item 5 relate to the estimated initial investment in Item 7, especially considering the lack of financing options in Item 10?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of \$250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between \$5,000 and \$10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

#### Fee Deferral

Some states have imposed a fee deferral. Please refer to the State Addendum in Exhibit E to the Franchise Disclosure Document.

#### Area Development Fee

If you are going to be an Area Developer, then you will sign an Area Development Agreement and pay us an area development fee (the "Area Development Fee").

Question 40

How does the initial franchise fee for Crepe De Licious in Item 5 relate to the pre-opening assistance provided by the franchisor as described in Item 11?

Accepted Answer

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

Before you open your Crepe de licious Franchise, we (or our designee(s)) will provide the following assistance and services to you:

- 1 Provide site selection guidelines and criteria, and provide site selection assistance to determine an acceptable location for your Crepe de licious Franchise (See Franchise Agreement – Section 7.01).
- 2 Review your lease agreement for the Restaurant or Kiosk to ensure that its terms contain our required provisions and otherwise meets our minimum standards (See Franchise Agreement – Section 7.02).
- 3 Review and authorize a final lease for your Restaurant or Kiosk (See Franchise Agreement – Section 4.02).
- 4 Provide restaurant design preparation services and specifications for furniture, fixtures, equipment, inventory, and supplies required to operate your Crepe de licious Business. You must submit final construction plans and specifications to us for our approval before you begin construction at the premises, and must construct your Restaurant, Kiosk, or Food Truck in accordance with those approved plans and specifications (See Franchise Agreement – Sections 7.03, 7.05 and 7.06).
- 5 Counsel you on necessary pre-opening procedures and assist you with inventory ordering of products, equipment, and supplies through our affiliate or other suppliers, as applicable, which are necessary for commencement of operations (See Franchise Agreement – Sections 7.05, 7.06, 7.07 and 7.10).

Except as listed below, CDHU is not required to provide you with any assistance.

Question 41

How does the initial franchise fee for Crepe De Licious in Item 5 relate to the pre-opening assistance provided by the franchisor as described in Item 11, and the estimated initial investment in Item 7?

Accepted Answer

[Item 5: INITIAL FEES]

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

- 4 Provide restaurant design preparation services and specifications for furniture, fixtures, equipment, inventory, and supplies required to operate your Crepe de licious Business. You must submit final construction plans and specifications to us for our approval before you begin construction at the premises, and must construct your Restaurant, Kiosk, or Food Truck in accordance with those approved plans and specifications (See Franchise Agreement – Sections 7.03, 7.05 and 7.06).
- 5 Counsel you on necessary pre-opening procedures and assist you with inventory ordering of products, equipment, and supplies through our affiliate or other suppliers, as applicable, which are necessary for commencement of operations (See Franchise Agreement – Sections 7.05, 7.06, 7.07 and 7.10).
- 6 Loan to you, or make available to you on our website, one copy of the Operations Manual. The Operations Manual contains approximately 197 pages. The table of contents for the Operations Manual is attached to this Franchise Disclosure Document as Exhibit F (See Franchise Agreement - Section 7.04).
- 7 Provide a list of our approved items, services, and suppliers, and consultation on required purchases as we deem necessary and appropriate (See Franchise Agreement – Sections 7.05 – 7.07).
- 8 Provide assistance with your grand opening marketing programs (See Franchise Agreement Section 5.13(b) and Section 7.10).
- 9 Provide an initial training program in Concord, Ontario, Canada or another location designated by us ("Initial Training Program") to you and your designated manager, if applicable (See Franchise Agreement - Section 7.08).
- 10 Provide templates for certain promotional and advertising materials, and consultation in connection with the grand opening of your Crepe de licious Business (See Franchise Agreement - Section 7.10).

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

- 1.

Initial Franchise Fee.

You must pay us an initial franchise fee to purchase a franchise.

The initial franchise fee is payment for all our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business.

See Item 5 for additional information about your Initial Franchise Fee and the Territory Reservation Fee. *Because the Territory Reservation Fee is credited towards the Initial Franchise Fee if you purchase a Franchise and sign a Franchise Agreement, we have not calculated it as a separate fee from the Initial Franchise Fee.

- 2.

Design Fee.

We provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck.

You must pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business.

This fee will vary depending on the size and complexity of the design.

- 3.

Mechanical, Electrical, Plumbing, and Architectural Fees.

This estimate covers the mechanical, electrical, plumbing, and architectural costs and fees that you will incur in constructing or remodeling your Restaurant or Kiosk.

- 14.

Grand Opening Promotion.

You must spend at least $2,500 on a grand opening advertising campaign that meets our standards and specifications.

- 16.

Initial Training Expenses.

We provide training at our training center in Concord, Ontario, Canada or at another location designated by us.

Initial training is provided at no charge for up

Question 42

How does the non-exclusive territory granted to a Crepe De Licious franchisee in Item 12 affect their obligations regarding site selection and operation as described in Item 9?

Accepted Answer

[Item 12: TERRITORY]

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

---

[Item 12: TERRITORY]

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);

- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;

---

[Item 12: TERRITORY]

We are not required to pay you if we exercise any of the rights specified above within your Territory. The continuation of the Territory is not dependent upon your achievement of a certain sales volume, market penetration or other contingency. We do not pay compensation for soliciting or accepting orders inside your Territory.

If the lease for your Restaurant or Kiosk expires or is terminated without your fault, or if the site for your Restaurant or Kiosk is destroyed, condemned, or otherwise rendered unusable, we will allow you to relocate your Crepe de licious Franchise to a new site acceptable to us, provided you will be required to pay us a relocation fee of $2,500. Relocation for any other reason will be subject to our approval which may be withheld in our sole discretion. Any relocation will be subject to the site selection and lease provisions stated above. Any relocation will be at your sole expense. Our approval will, among other things, be based on the following factors: where your Restaurant or Kiosk will be located, whether or not such relocation will infringe upon the rights of other franchisees, and the time it will take to relocate your Restaurant or Kiosk. All leases, subleases, or other agreements that you enter into to relocate the Restaurant or Kiosk must conform to the provisions of the Franchise Agreement. You must obtain a lease acceptable to us for your substitute location, build-out the new substitute location in accordance with our standards and specifications, and open for business at the new location within 120 days of closing the Crepe de licious Business at your existing Approved Location. Relocation is not applicable to any Food Truck.

Question 43

How does the non-exclusive territory granted to a Crepe De Licious franchisee in Item 12 affect their obligations regarding site selection and operation as described in Item 9, and the standards and specifications they must adhere to as per Item 8?

Accepted Answer

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

Question 44

What obligations does a Crepe De Licious franchisee have regarding standards and specifications as described in Item 8, and how do these relate to the franchisee's obligations listed in Item 9?

Accepted Answer

You must operate your Crepe de licious Franchise in strict conformity with the methods, standards, and specifications we list in our proprietary and confidential operating manual ("Operations Manual"), which may exist in various parts, locations, and formats, and may include a combination of audio, video, written material, electronic media, website content, and/or software components. You must not: (i) deviate

![](_page_25_Picture_0.jpeg)

from these methods, standards, and specifications without our prior written consent; or (ii) otherwise operate in any manner which reflects adversely on our Marks or the System. If you use any unapproved item or service at your Crepe de licious Franchise, you will be required to pay the Unauthorized Product or Service Fee to Us.

Our Operations Manual states our standards, specifications, and guidelines for all products and services we require you to obtain in establishing and operating your Crepe de licious Franchise. We will notify you of new or modified standards, specifications, and guidelines through periodic amendments or supplements to the Operations Manual or through written communication (including electronic communication). We will issue copies of our standards and specifications to you and approved and proposed suppliers, unless these standards and specifications contain our confidential information.

You must purchase, install, maintain in sufficient supply, and use, only fixtures, furnishings, equipment, signs, and supplies that conform to the standards and specifications described in the Operations Manual or otherwise in writing.

You must use the computer programs and related materials developed for use in the operation of Crepe de licious Franchises. The Software (defined in Item 11) includes the POS system software. You must pay us a technology fee for website hosting and other services. You must pay a separate license fee for the POS software this may be direct to the POS vendor or paid to us, as determined by us. The purchase of the Software license may include technical support. See Item 6 and Item 7 for more information about the technology fee and POS software license. Franchisees are required to purchase computer systems from our designated suppliers. You must use the computer hardware and software, including the point-of-sale system that we periodically designate to operate your Crepe de licious Business. You must obtain the computer system, software licenses, maintenance and support services, and other related services from the suppliers we specify (which may be limited to us and/or our affiliates). Neither we nor our affiliates are currently suppliers of the computer system, except for the services procured for the technology fee described above.

Question 45

What obligations does a Crepe De Licious franchisee have regarding standards and specifications as described in Item 8, and how do these relate to the franchisee's obligations listed in Item 9, and the trademarks they are licensed to use in Item 13?

Accepted Answer

You must operate your Crepe de licious Franchise in strict conformity with the methods, standards, and specifications we list in our proprietary and confidential operating manual ("Operations Manual"), which may exist in various parts, locations, and formats, and may include a combination of audio, video, written material, electronic media, website content, and/or software components. You must not: (i) deviate

![](_page_25_Picture_0.jpeg)

from these methods, standards, and specifications without our prior written consent; or (ii) otherwise operate in any manner which reflects adversely on our Marks or the System. If you use any unapproved item or service at your Crepe de licious Franchise, you will be required to pay the Unauthorized Product or Service Fee to Us.

Our Operations Manual states our standards, specifications, and guidelines for all products and services we require you to obtain in establishing and operating your Crepe de licious Franchise. We will notify you of new or modified standards, specifications, and guidelines through periodic amendments or supplements to the Operations Manual or through written communication (including electronic communication). We will issue copies of our standards and specifications to you and approved and proposed suppliers, unless these standards and specifications contain our confidential information.

You must purchase, install, maintain in sufficient supply, and use, only fixtures, furnishings, equipment, signs, and supplies that conform to the standards and specifications described in the Operations Manual or otherwise in writing.

Question 46

How does the potential opening extension fee for Crepe De Licious in Item 6 relate to the franchisee's obligations regarding site selection and opening as described in Item 9?

Accepted Answer

OTHER FEES**

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees. |  |
|  |  |
![](_page_12_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee(2) | 6% of Gross Revenues | 5th day of each month for the immediately preceding month | The “Royalty Fee” is based on “Gross Revenues” during the previous period. Your Royalty Fee is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. |
| Advertising Fee | 3% of Gross Revenues | Same as Royalty Fee | We charge this fee for the creation of a national advertising fund. The advertising fee is discussed in Item 11. |![](_page_13_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Convention Fee(4) | Then-current fee (currently up to $500 per person) | As incurred | Payable to us to help defray the cost of your attendance at any annual convention that we choose to hold. This fee is due regardless of whether or not you attend our annual convention in any given year. |
| Transfer Fee | $5,000 if transferring to one of our existing franchisees;

Question 47

How does the potential opening extension fee for Crepe De Licious in Item 6 relate to the franchisee's obligations regarding site selection and opening as described in Item 9, and the estimated initial investment in Item 7?

Accepted Answer

OTHER FEES**

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees. |  |
|  |  |
![](_page_12_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee(2) | 6% of Gross Revenues | 5th day of each month for the immediately preceding month | The “Royalty Fee” is based on “Gross Revenues” during the previous period.

Question 48

What is the relationship between the initial franchise fee for Crepe De Licious in Item 5 and the estimated initial investment detailed in Item 7?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of \$250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between \$5,000 and \$10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from fr

Question 49

What is the relationship between the initial franchise fee for Crepe De Licious in Item 5 and the estimated initial investment detailed in Item 7, considering the potential design fee mentioned in Item 6?

Accepted Answer

| Type of Expenditure | Amount |  | Method of Payment | When Due | To Whom Payment is to be Paid |
|---|---|---|---|---|---|
|  | Low | High |  |  |  |
| Initial Franchise | $35,000 | $35,000 | Lump sum | Upon signing of | Us |
| Fee(1) |  |  |  | Franchise Agreement |  |
| Territory | $10,000 | $10,000* | Lump Sum | Due before Franchise | Us |
| Reservation Fee(1) |  |  |  | Agreement is signed |  |
| Design Fee(2) | $5,000 | $10,000 | As incurred | Upon ordering designs | Us |
| Mechanical, | $5,000 | $25,000 | As incurred | As agreed | Third Parties |
| Electrical, |  |  |  |  |  |
| Plumbing, and |  |  |  |  |  |
| Architectural |  |  |  |  |  |
| Fees(3) |  |  |  |  |  |
| Real Estate Agent | $10,000 | $15,000 | As incurred | As agreed | Third Parties |
| Fees(4) |  |  |  |  |  |
| Rent, Security Deposit, Utility Deposit(5) | $1,500 | $5,000 | As incurred | As agreed

Question 50

What is the relationship between the initial franchise fee (Item 5), the opening extension fee (Item 6), and the estimated initial investment (Item 7) for a Crepe De Licious franchise?

Accepted Answer

| Type of Expenditure | Amount |  | Method of Payment | When Due | To Whom Payment is to be Paid |
|---|---|---|---|---|---|
|  | Low | High |  |  |  |
| Initial Franchise | $35,000 | $35,000 | Lump sum | Upon signing of | Us |
| Fee(1) |  |  |  | Franchise Agreement |  |
| Territory | $10,000 | $10,000* | Lump Sum | Due before Franchise | Us |
| Reservation Fee(1) |  |  |  | Agreement is signed |  |
| Design Fee(2) | $5,000 | $10,000 | As incurred | Upon ordering designs | Us |
| Mechanical, | $5,000 | $25,000 | As incurred | As agreed | Third Parties |
| Electrical, |  |  |  |  |  |
| Plumbing, and |  |  |  |  |  |
| Architectural |  |  |  |  |  |
| Fees(3) |  |  |  |  |  |
| Real Estate Agent | $10,000 | $15,000 | As incurred | As agreed | Third Parties |
| Fees(4) |  |  |  |  |  |
| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open.

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

Question 51

What is the relationship between the initial franchise fee for Crepe De Licious (Item 5) and the potential design fee (Item 6) in the context of the estimated initial investment (Item 7)?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

Question 52

What is the relationship between the initial franchise fee for Crepe De Licious (Item 5), the potential design fee (Item 6), and the estimated initial investment (Item 7), considering the lack of financing options in Item 10?

Accepted Answer

[Item 5: INITIAL FEES]

You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from $2,000 to $20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of $10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of $250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between $5,000 and $10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT]

These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Crepe de licious Franchise. We do not offer direct or indirect financing for these items. Our

Question 53

What is the relationship between the initial franchise fee (Item 5), the potential opening extension fee (Item 6), the estimated initial investment (Item 7), and the franchisor's pre-opening obligations (Item 11) for a Crepe De Licious franchise?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of \$250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between \$5,000 and \$10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

#### Fee Deferral

Some states have imposed a fee deferral. Please refer to the State Addendum in Exhibit E to the Franchise Disclosure Document.

Question 54

What is the relationship between the initial franchise fee (Item 5), the potential opening extension fee (Item 6), the estimated initial investment (Item 7), the franchisor's pre-opening obligations (Item 11), and the territory granted (Item 12) for a Crepe De Licious franchise?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of \$10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be

![](_page_11_Picture_0.jpeg)

able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.

If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of \$250 per week until the Crepe de licious Business is open.

You may be required to also pay us a non-refundable "Design Fee" between \$5,000 and \$10,000 to provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not collect any Design Fees from franchisees.

#### Fee Deferral

Some states have imposed a fee deferral. Please refer to the State Addendum in Exhibit E to the Franchise Disclosure Document.

#### Area Development Fee

If you are going to be an Area Developer, then you will sign an Area Development Agreement and pay us an area development fee (the "Area Development Fee"). The amount of the Area Development Fee will be calculated by multiplying \$35,000 times the number of Crepe Delicious Restaurants to be developed under the Area Development Agreement. The Area Development Fee will be due in a lump sum payment upon the signing of an Area Development Agreement. The Area Development Fee is fully earned and nonrefundable in consideration of administrative and other expenses we incur in entering into the Area Development Agreement, and for our lost or deferred opportunities to enter into the Area Development Agreement with others, regardless of whether you enter into any Franchise Agreements for Franchised Restaurants to be developed. The Area Development Fee is imposed uniformly.

## **ITEM 6 OTHER FEES**

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees.

Question 55

What is the relationship between the initial franchise fee for Crepe De Licious mentioned in Item 5 and the opening extension fee described in Item 6?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee ("Initial Franchise Fee") of \$35,000 when you sign the Franchise Agreement. The Initial Franchise Fee is payment for all of our pre-opening assistance that we will provide to allow you to open your Crepe de licious Business and also offsets some of our franchisee recruitment expenses. In 2024, we collected Initial Franchise Fees ranging from \$2,000 to \$20,667 , though we intend for this fee to be uniform across the system.

Question 56

What is the relationship between the potential design fee for Crepe De Licious in Item 6 and the franchisor's pre-opening obligations as described in Item 11?

Accepted Answer

OTHER FEES**

| If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee (“Opening Extension Fee”) of $250 per week until the Crepe de licious Business is open. |  |
|---|---|
|  |  |
| You may be required to also pay us a non-refundable “Design Fee” between $5,000 and $10,000 to |  |
| provide restaurant design preparation services for your Restaurant, Kiosk, or Food Truck at our discretion. |  |
| If required, You will pay the Design Fee upon ordering the designs prior to opening your Crepe de licious |  |
| Business. This fee will vary depending on the size and complexity of the design. In 2023, our we did not |  |
| collect any Design Fees from franchisees. |  |
|  |  |
![](_page_12_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee(2) | 6% of Gross Revenues | 5th day of each month for the immediately preceding month | The “Royalty Fee” is based on “Gross Revenues” during the previous period. Your Royalty Fee is an ongoing payment that allows you to use the Marks and the intellectual property of the System and pays for our ongoing support and assistance. |
| Advertising Fee | 3% of Gross Revenues | Same as Royalty Fee | We charge this fee for the creation of a national advertising fund. The advertising fee is discussed in Item 11. |![](_page_13_Picture_0.jpeg)

| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Convention Fee(4) | Then-current fee (currently up to $500 per person) | As incurred | Payable to us to help defray the cost of your attendance at any annual convention that we choose to hold. This fee is due regardless of whether or not you attend our annual convention in any given year. |
| Transfer Fee | $5,000 if transferring to one of our existing franchisees; $10,000 if transferring to a third party | $1,000 non- refundable deposit at time transfer application is submitted, and the remaining balance of fee at time of approved transfer | Payable in connection with the transfer of your Restaurant, Kiosk, or Food Truck, a transfer of ownership of your legal entity, or the Franchise Agreement.

Question 57

What is the relationship between the trademarks used by Crepe De Licious in Item 13 and the franchisee's obligation to adhere to the system as described in Item 9?

Accepted Answer

hanges.

## **ITEM 13 TRADEMARKS**

The Franchise Agreement and your payment of Royalties grant you the non-exclusive right and license to use the System, which includes the use of the Proprietary Marks. You may also use other future trademarks, service marks, and logos we approve to identify your Crepe de licious Franchise.

The Marks and the System are owned by Holdings, and are licensed exclusively to us. Holdings has granted us an exclusive license ("Trademark License") to use the Marks to franchise the System in the United States. The Trademark License is for ten years and began on December 23, 2014. It will automatically renew for subsequent ten-year periods provided we are not in default or do not materially breach the Trademark License agreement by engaging in any activity which damages the Marks or the goodwill of the System. If the Trademark License agreement is terminated, Holdings has agreed to license the use of the Marks directly to our franchisees until such time as each franchise agreement expires or is otherwise terminated. Holdings has registrations with the United States Patent and Trademark Office ("USPTO") for the following Marks:

![](_page_43_Picture_0.jpeg)

| Mark | Registration Number/Serial Number | Registration/ Application Date | Status |
|---|---|---|---|
| CREPE DE LICIOUS | 4,659,446 | December 23, 2014 | Registered on the Principal Register |
|  | 4,659,447 | December 23, 2014 | Registered on the Principal Register |
| Crêpe Delicious Urban Cafê | 6129712 | August 18, 2020 | Registered on the Principal Register |
|  | 6135463 | August 25, 2020 | Registered on the Principal Register | All required affidavits have been filed for the registered Marks. There are no effective adverse material determinations of the USPTO, the Trademark Trial and Appeal Board, the trademark administrator of any state or any court, and no pending infringement, opposition, or cancellation proceedings or material litigation involving the Marks.

Question 58

What is the relationship between the trademarks used by Crepe De Licious in Item 13, the franchisee's obligation to adhere to the system as described in Item 9, and the franchisor's pre-opening obligations in Item 11?

Accepted Answer

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

You may not open your Crepe de licious Business until: (1) we notify you in writing that all of your pre-opening obligations have been fulfilled; (2) you have completed the Initial Training Program to our satisfaction; (3) all amounts due to us have been paid; (4) we have been furnished with copies of all insurance policies and certificates required by the Franchise Agreement, or other documentation of insurance coverage and payment of premiums that we request; (5) you notify us that all approvals and conditions stated in the Franchise Agreement have been met; (6) you have received all required permits and licenses; and (7) you have ordered, received, and installed your fixtures, equipment, supplies, inventory, and computer system. You must be prepared to begin operating your Crepe de licious Business immediately after we state your Crepe de licious Business is ready for opening.

#### Continuing Obligations

During the operation of your Crepe de licious Business, we (or our designee(s)) will provide the following assistance and services to you:

![](_page_32_Picture_0.jpeg)

[Item 22: CONTRACTS]

#### **BACKGROUND:**

- A. We have the right to use and to license to our franchisees a proprietary and distinctive system ("System") relating to the establishment and operation of Crepe de licious restaurants and kiosks (each a "Crepe Delicious Restaurant") which make and sell some or all of the following: crepe-based dishes and other specialty food items, gelato, beverage items and other items. We also have the right to use and to license to our franchisees certain service marks, trademarks, trade names, trade dress, logos, slogans and commercial symbols used to identify the restaurant or kiosk or particular items and services offered (collectively, the "Marks").
- B. The distinguishing characteristics of the System include distinctive exterior and interior design, decor, color schemes, fixtures, and furnishings; recipes, standards and specifications for products, equipment, materials, and supplies; uniform standards, specifications, and procedures for operations; purchasing and sourcing procedures; procedures for inventory and management control; training and assistance; and marketing and promotional programs; all of which may be changed, improved, and further developed by Franchisor from time to time.
- C. The System is identified by means of certain indicia of origin, emblems, trade names, service marks, logos, and trademarks, including applications and/or registrations therefor, as are now designated and may hereafter be designated by Franchisor in writing for use in connection with the System including the marks "Crepe Delicious" and other marks (the "Marks").

Question 59

How does the site selection assistance provided by Crepe De Licious in Item 11 relate to the site selection obligations of the franchisee detailed in Item 9?

Accepted Answer

# Pre-opening Obligations

Before you open your Crepe de licious Franchise, we (or our designee(s)) will provide the following assistance and services to you:

- 1 Provide site selection guidelines and criteria, and provide site selection assistance to determine an acceptable location for your Crepe de licious Franchise (See Franchise Agreement – Section 7.01).
- 2 Review your lease agreement for the Restaurant or Kiosk to ensure that its terms contain our required provisions and otherwise meets our minimum standards (See Franchise Agreement – Section 7.02).
- 3 Review and authorize a final lease for your Restaurant or Kiosk (See Franchise Agreement – Section 4.02).

![](_page_29_Picture_0.jpeg)

- 4 Provide restaurant design preparation services and specifications for furniture, fixtures, equipment, inventory, and supplies required to operate your Crepe de licious Business. You must submit final construction plans and specifications to us for our approval before you begin construction at the premises, and must construct your Restaurant, Kiosk, or Food Truck in accordance with those approved plans and specifications (See Franchise Agreement – Sections 7.03, 7.05 and 7.06).
- 5 Counsel you on necessary pre-opening procedures and assist you with inventory ordering of products, equipment, and supplies through our affiliate or other suppliers, as applicable, which are necessary for commencement of operations (See Franchise Agreement – Sections 7.05, 7.06, 7.07 and 7.10).
- 6 Loan to you, or make available to you on our website, one copy of the Operations Manual. The Operations Manual contains approximately 197 pages. The table of contents for the Operations Manual is attached to this Franchise Disclosure Document as Exhibit F (See Franchise Agreement - Section 7.04).
- 7 Provide a list of our approved items, services, and suppliers, and consultation on required purchases as we deem necessary and appropriate (See Franchise Agreement – Sections 7.05 – 7.07).
- 8 Provide assistance with your grand opening marketing programs (See Franchise Agreement Section 5.13(b) and Section 7.10).
- 9 Provide an initial training program in Concord, Ontario, Canada or another location designated by us ("Initial Training Program") to you and your designated manager, if applicable (See Franchise Agreement - Section 7.08).
- 10 Provide templates for certain promotional and advertising materials, and consultation in connection with the grand opening of your Crepe de licious Business (See Franchise Agreement - Section 7.10).

Under Area Development Agreement: Before you open the Franchised Restaurant:

- 1. We will approve or deny your proposed site for each Franchised Restaurant. (Area Development Agreement, Section 3.2)
- 2.

Question 60

How does the territory granted to a Crepe De Licious franchisee (Item 12) relate to their obligations regarding site selection (Item 9) and the franchisor's approval (Item 12)?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;
- 5 to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Restaurant, Kiosk, or Food Truck operated by you;
- 6 to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Crepe de licious Restaurant, Kiosk, or Food Truck, wherever located;
- 7 to acquire and convert to the System operated by us, any businesses offering services and products similar to offered by Crepe de licious Restaurants, Kiosks, and Food Trucks, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory, provided that in such situations the newly acquired businesses may not operate under the Marks in the Territory;

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8 to implement multi-area marketing programs, which may allow us or others to solicit or sell to customers anywhere. We also reserve the right to issue mandatory policies to coordinate such multi-area marketing programs.

We are not required to pay you if we exercise any of the rights specified above within your Territory. The continuation of the Territory is not dependent upon your achievement of a certain sales volume, market penetration or other contingency. We do not pay compensation for soliciting or accepting orders inside your Territory.

If the lease for your Restaurant or Kiosk expires or is terminated without your fault, or if the site for your Restaurant or Kiosk is destroyed, condemned, or otherwise rendered unusable, we will allow you to relocate your Crepe de licious Franchise to a new site acceptable to us, provided you will be required to pay us a relocation fee of \$2,500. Relocation for any other reason will be subject to our approval which may be withheld in our sole discretion. Any relocation will be subject to the site selection and lease provisions stated above. Any relocation will be at your sole expense.

Question 61

How does the territory granted to a Crepe De Licious franchisee in Item 12 relate to the site selection and acquisition/lease obligations outlined in Item 9?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market.

Question 62

How does the territory granted to a Crepe De Licious franchisee in Item 12 relate to the site selection and acquisition/lease obligations outlined in Item 9, and the franchisor's assistance with site selection in Item 11?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

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The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);

Question 63

How does the territory granted to a Crepe De Licious franchisee in Item 12 relate to the standards and specifications they must adhere to as described in Item 8, and the trademarks they are allowed to use as per Item 13?

Accepted Answer

[Item 12: TERRITORY]

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

---

#### **2. GRANT AND LIMITATIONS**

**2.01 Grant of Franchise**. Subject to all of the terms and conditions in this Agreement, we grant to you, and you accept, the license ("**Franchise**") to use the System and the Marks in connection with the establishment and operation of a Franchised Business at a Restaurant, Kiosk, or Food Truck situated at the specific location ("**Approved Location**") set forth in Attachment A to this Agreement.

## **2.02 Limitations on Grant.**

- (a) System Standards. The Franchise granted by this Agreement is limited to the operation of a Restaurant, Kiosk, or Food Truck in strict accordance with the provisions of this Agreement and the standards we specify in writing, as periodically amended, modified, supplemented or deleted, which we impose on our franchisees in connection with participation in the System, including all mandatory and suggested specifications, policies, rules, techniques and procedures we promulgate about System operation usage (collectively, the "**System Standards**"). You have no rights under this Agreement to use, and you will not use, the System, Marks or Restaurant, Kiosk, or Food Truck premises in connection with any other business, activities, or unapproved items or services.
- (b) Trade Name. The Franchise granted by this Agreement is limited to establishment and operation of the Franchised Business only under the trade name "Crepe de licious" or other trade name that we expressly authorize or require in writing. You will not adopt alternative, additional or secondary trade names unless you have our prior express written consent.

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- (c) Location Approval by Us and Local Municipality.

The Franchise granted by this Agreement is limited to a single Restaurant, Kiosk, or Food Truck at the Approved Location.

The Restaurant or Kiosk must be located at the Approved Location.

The Food Truck must always be located within the Territory.

If a particular site has not been selected and approved at the time this Agreement is signed, Attachment A will describe the Approved Location in general terms.

---

[Item 12: TERRITORY]

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:

- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);

- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-comm

Question 64

How do the territory restrictions for a Crepe De Licious franchise in Item 12 relate to the standards and specifications for the restaurant or kiosk as described in Item 8?

Accepted Answer

ness).

## **ITEM 12 TERRITORY**

You must purchase or lease a retail space for your Restaurant or Kiosk which meets our standards and specifications for a Crepe de licious Restaurant or Kiosk ("Approved Location"). We must approve your Approved Location and lease terms before you sign a lease for a location. The Franchise Agreement for your Crepe de licious Franchise grants you the non-exclusive right to operate one Crepe de licious Restaurant or Kiosk from the Approved Location, or a Food Truck within the Territory. If you have not identified an Approved Location for your Restaurant or Kiosk when you sign the Franchise Agreement, as is typically the case, you and we will agree on the Approved Location in writing and amend the Franchise Agreement after you select and we approve the Approved Location. Although we may assist you in selecting a location for your Restaurant, Kiosk, or Food Truck, you are solely responsible for selecting the Approved Location and negotiating the lease or purchase term. You are not guaranteed any specific approved location, and you may not be able to obtain your top choice as your Approved Location. The Approved Location for your Restaurant, Kiosk, or Food Truck will be located within a specific area ("Territory"). The Territory is determined based on the geographic area and population properties within that area and other relevant demographic characteristics and will typically be at least a five mile radius around your Restaurant or Kiosk but will be an assigned list of zip codes for a Food Truck. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You may also face competition from third party delivery or ghost kitchens related to or utilized by our franchise system. You may not sell products or services, or advertise products or services, within another franchisee's Territory. The Approved Location for a food truck will be located within a specific Territory based on zip codes and will vary depending on the specific market. There may be other specific territorial restrictions

After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.

![](_page_40_Picture_0.jpeg)

The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.

Crepe_De_Licious 2025 FDD FAQ