What constitutes a default under the Crepe De Licious Area Development Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not comply with a deadline under the Development Schedule (a "Missed Deadline"), you will be in default under the Area Development Agreement. For one Missed Deadline, we will provide you with an opportunity to cure your default and we will determine and notify you of a new deadline for that one Missed Deadline (without changing the remainder of the Development Schedule). If you fail to come into compliance by that new deadline, and/or upon the occurrence of a second Missed Deadline, we may terminate your Area Development Agreement, or we may elect to take one or more of the following actions: (a) eliminate the limited exclusivity or reduce the scope of protections granted to you within the Development Area; (b) reduce the scope of the Development Area; (c) reduce the number of Franchised Restaurants for you to develop, or (d) retain all Area Development Fees paid to us. If we elect to take one or more of these actions, we will provide written notice of such action, and the Area Development Agreement will be amended to reflect the changes.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, failing to meet a deadline outlined in the Development Schedule constitutes a default under the Area Development Agreement. This is referred to as a "Missed Deadline."
For the first instance of a Missed Deadline, Crepe De Licious will provide the franchisee with an opportunity to rectify the situation by setting a new deadline. However, if the franchisee fails to meet this new deadline, or if a second Missed Deadline occurs, Crepe De Licious has the right to terminate the Area Development Agreement.
In lieu of termination after a second missed deadline, Crepe De Licious may choose other actions such as eliminating or reducing the franchisee's exclusive protections within the Development Area, reducing the scope of the Development Area, decreasing the number of Franchised Restaurants the franchisee is allowed to develop, or retaining all Area Development Fees already paid. Crepe De Licious will provide written notice if they elect to take any of these actions, and the Area Development Agreement will be amended accordingly.