What constitutes a 'Missed Deadline' under the Crepe De Licious Area Developer Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure by Area Developer to meet a deadline under the Development Schedule (a "Missed Deadline") shall constitute a default under this Agreement.
Franchisor shall, for one (1) Missed Deadline, provide Area Developer with a reasonable opportunity to cure such default by notifying Area Developer in writing of a new date for the Missed Deadline (without change to any other deadline in the Development Schedule).
If Area Developer fails to comply with the Development Schedule by such new deadline, and/or upon the occurrence of another Missed Deadline, Franchisor, in its discretion, may terminate this Agreement and all rights granted hereunder without affording Area Developer any further opportunity to cure the default, effective immediately upon the delivery of written notice to Area Developer (in the manner set forth in Section 10 of this Agreement); or Franchisor, in its discretion, may elect, in lieu of terminating this Agreement, to take any of the actions described in Section 6.5 below.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, a 'Missed Deadline' occurs when an Area Developer fails to meet a deadline outlined in the Development Schedule. The Development Schedule is specified in Paragraph 1 of Exhibit A to the Area Development Agreement. This schedule dictates the timelines for executing Franchise Agreements for each Crepe De Licious restaurant to be developed under the Area Development Agreement.
Missing a deadline under the Development Schedule constitutes a default under the Area Development Agreement. However, for the first instance of a Missed Deadline, Crepe De Licious provides the Area Developer with an opportunity to rectify the situation. The franchisor will notify the Area Developer in writing of a new date for the missed deadline, without altering any other deadlines in the Development Schedule.
If the Area Developer fails to meet the new deadline or incurs another Missed Deadline, Crepe De Licious has the discretion to terminate the Area Development Agreement and all rights granted to the Area Developer without any further opportunity to cure the default. This termination becomes effective immediately upon written notice to the Area Developer. Alternatively, instead of terminating the agreement, Crepe De Licious can choose to take other actions as described in Section 6.5 of the Area Development Agreement.
This clause is significant for prospective Area Developers as it highlights the importance of adhering to the Development Schedule. Failure to meet these deadlines can lead to potential termination of the agreement and loss of development rights. It is crucial for Area Developers to carefully review and understand the Development Schedule and ensure they have the resources and capabilities to meet the agreed-upon timelines.