What is the Area Developer responsible for regarding the Crepe De Licious Franchise Agreements?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
connection therewith.
NOW THEREFORE, the parties agree as follows:
1. GRANT
- 1.1 Grant and Acceptance. Franchisor grants development rights to Area Developer, and Area Developer undertakes the obligation, pursuant to the terms and conditions of this Agreement, to develop no less than the number of Crepe Delicious Restaurants (the "Franchised Restaurant") as set forth in Exhibit A to this Agreement. In this regard, the parties further agree that:
- 1.1.1 Each Franchised Restaurant developed hereunder shall be operated pursuant to a separate Crepe Delicious Holding USA, Inc. Franchise Agreement (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
- 1.1.2 For each Franchised Restaurant to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Restaurant in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
- 1.1.3 Each Franchised Restaurant developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area").
- 1.2 Development Area. Except as otherwise set forth herein (including, without limitation, the rights retained by Franchisor as described in Section 1.3), during the term of this Agreement, and so long as Area Developer is in compliance with its obligations under this Agreement and all of the Franchise Agreements between Area Developer (including any affiliate of Area Developer), Franchisor shall not establish or operate, or license anyone other than Area Developer to establish or operate, a Crepe Delicious Restaurant under the Marks and System at any location that is within the Development Area.
- 1.3 Franchisor's Reserved Rights.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the Area Developer has specific responsibilities regarding the Franchise Agreements within their designated development area. The Area Developer must execute a separate Franchise Agreement for each Crepe De Licious restaurant they plan to develop, adhering to the deadlines outlined in the development schedule. Each restaurant must be at a specific location designated in the Franchise Agreement and within the defined development area.
Crepe De Licious also requires the Area Developer to comply with obligations under the Area Developer Agreement and all Franchise Agreements. As long as the Area Developer remains compliant, Crepe De Licious will not establish or license others to establish or operate a Crepe De Licious restaurant within the Development Area. However, Crepe De Licious retains the right to operate or license others to operate Crepe De Licious restaurants outside the Development Area, regardless of their proximity to the Development Area or impact on sales within the Development Area.
Furthermore, upon termination or expiration of the Area Developer Agreement, the Area Developer loses the right to establish or operate any Crepe De Licious restaurant for which a Franchise Agreement has not been executed by Crepe De Licious at the time of termination or expiration. This means that the Area Developer needs to ensure all Franchise Agreements are in place to maintain their rights to operate the restaurants they have developed. These stipulations ensure that the Area Developer actively develops the territory according to the agreed-upon schedule and protects Crepe De Licious's interests in the event of a breach or termination of the agreement.