How is the Area Development Fee for Crepe De Licious calculated?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise 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. Area Developer shall thereafter comply with all pre-opening and opening requirements set forth in the Franchise Agreement relating to the Franchised Restaurant.
3.5 Force Majeure Events. Area Developer shall not be responsible for non-performance or delay in performance occasioned by a "force majeure," which means an act of God, war, civil disturbance, act of terrorism, government action, fire, flood, accident, hurricane, earthquake, or other calamity, strike or other labor dispute, or any other cause beyond the reasonable control of Area Developer; provided, however, force majeure shall not include Area Developer's lack of adequate financing. If any delay occurs, any applicable time period hereunder shall be automatically extended for a period equal to the time lost; provided, however, that Area Developer shall make reasonable efforts to correct the reason for such delay and give Franchisor prompt written notice of any such delay.
4. DEVELOPMENT FEE AND INITIAL FRANCHISE FEE
- Area Development Fee. In consideration of the development rights granted herein, upon execution of this Agreement, Area Developer shall pay an area development fee ("Area Development Fee") that is equal to Thirty-Five Thousand Dollars ($35,000) multiplied by the number of Franchised Restaurant to be developed and opened within the Development Area during the term of this Agreement and in accordance with the Development Schedule, the total amount of such Area Development Fee is specified in Paragraph 3 of Exhibit A. Receipt of the Area Development Fee is hereby acknowledged. The Area Developer expressly acknowledges and agrees that the Area Development Fee is fully earned and nonrefundable in consideration of administrative and other expenses incurred by Franchisor and for the development opportunities lost or deferred as a result of the rights granted herein to Area De
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, the Area Development Fee is calculated by multiplying $35,000 by the number of franchised restaurants the Area Developer commits to develop and open within the designated Development Area during the term of the Area Development Agreement. The total amount of this fee is specified in Paragraph 3 of Exhibit A of the agreement.
This Area Development Fee is paid upon the execution of the Area Development Agreement. Crepe De Licious specifies that the Area Development Fee is fully earned and nonrefundable. This nonrefundable status is in consideration of administrative and other expenses incurred by Crepe De Licious, as well as the development opportunities that Crepe De Licious forgoes by granting the Area Developer exclusive rights within the designated territory. This means that even if the Area Developer does not ultimately open any Crepe De Licious restaurants, they will not receive a refund of the Area Development Fee.
In addition to the Area Development Fee, the initial franchise fee for each Crepe De Licious restaurant to be developed under the Development Schedule is also $35,000. This franchise fee is paid in full upon the execution of the Area Development Agreement. Therefore, an Area Developer should be prepared to pay both the Area Development Fee and the initial franchise fees upfront.