When must the Area Developer execute the Franchise Agreement for each Crepe De Licious restaurant to be developed?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
3.4.1 The Franchise Agreement for the first Franchised Restaurant to be developed under this Agreement shall be executed simultaneously with the execution of this Agreement.
3.4.2 The Franchise Agreement for each subsequent Franchised Restaurant to be developed under this Agreement shall be Franchisor's then-current form of Franchise Agreement, the terms of which may differ from the terms of the Franchise Agreement executed simultaneously with this Agreement including, without limitation, higher and/or additional fees; provided, however, so long as Area Developer is in compliance with this Agreement, the initial franchise fee (as set forth in Section 4.3 below) and the royalty fee shall each be the same as set forth in the first Franchise Agreement executed simultaneously with this Agreement.
3.4.3 Franchisor shall permit one or more Franchise Agreements to be executed by entities other than Area Developer; provided that (a) each such franchisee entity is controlled by, or under common control with, Area Developer, and (b) the Area Developer and all Managers (as defined in Section 9.1 below) of Area Developer requested by Franchisor execute guarantees, guarantying to Franchisor the timely payment and performance of franchisee's obligations under the Franchise Agreement.
3.4.4 Provided that Area Developer is in compliance with this Agreement, within ten (10) days after Area Developer locates and secures a site pursuant to Sections 3.2 and 3.3 above, Area Developer (or an affiliate of Area Developer pursuant to Section 3.4.3 above) shall execute the Franchise Agreement for such Franchised Restaurant, as provided in this Section 3.4.
Failure to timely execute a Franchise Agreement as required by this Section 3.4 will constitute a default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the timing for executing Franchise Agreements varies depending on whether it's the first restaurant or a subsequent one. The Franchise Agreement for the initial Crepe De Licious restaurant to be developed under the Area Development Agreement must be executed simultaneously with the Area Development Agreement itself.
For each subsequent Crepe De Licious restaurant, the Area Developer (or an approved affiliate) is required to execute the Franchise Agreement within ten (10) days after securing a site for the restaurant, provided they are in compliance with the Area Development Agreement. This timeline emphasizes the importance of prompt action once a location is secured to maintain compliance and avoid potential default.
Failure to execute a Franchise Agreement within the specified timeframe constitutes a default under the Area Development Agreement. This could lead to loss of development rights and other penalties. Therefore, prospective Area Developers should be prepared to act quickly and efficiently in securing locations and finalizing Franchise Agreements to meet the franchisor's requirements and maintain good standing within the Crepe De Licious franchise system.