How is the Area Development Fee calculated for a Crepe De Licious Area Development Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
pment 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
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the Area Development Fee is calculated by multiplying $35,000 by the number of Crepe De Licious restaurants the Area Developer commits to developing under the Area Development Agreement. This fee is payable in a lump sum upon signing the Area Development Agreement.
This Area Development Fee is considered fully earned and is nonrefundable. This nonrefundable status is in consideration of the administrative and other expenses Crepe De Licious incurs while entering into the Area Development Agreement. It also compensates Crepe De Licious for lost or deferred opportunities to offer the Area Development Agreement to other potential developers.
Prospective Area Developers should understand that this fee is separate from the initial investment required to open each individual Crepe De Licious restaurant. While the FDD does not include a separate initial investment table for Area Development Agreements, it states that these costs will be substantially similar to opening a single franchise unit, with the exception that professional fees may be higher. The payment of the Area Development Fee does not guarantee the success or profitability of the developed restaurants.