What is the deadline for reaching an agreement on an Approved Location for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
RITORY RESERVATION AGREEMENT AND RECEIPT**
CREPE DE LICIOUS
TERRITORY RESERVATION AGREEMENT AND RECEIPT
[Prospective Franchisee Name] ("Prospective Franchisee") has communicated to Crepe Delicious Holding USA, Inc. ("Franchisor") its intent to purchase a Crepe de licious Franchise. Prospective Franchisee and Franchisor desire to enter into this Territory Reservation Agreement and Receipt ("Agreement") in order for Prospective Franchisee to reserve a territory for a Crepe de licious Franchise and Franchisor to acknowledge receipt of Prospective Franchisee's territory reservation fee ("Territory Reservation Fee"). A non-refundable Territory Reservation Fee of $10,000 is required to reserve such territory for purchase.
Franchisor hereby accepts the Territory Reservation Fee in the amount of $10,000 to secure a hold on the territory designated below until [Date], by which time the purchase of the Crepe de licious Franchise purchase is to be completed:
[Description of territory to be held]
Final territory definition will be based on the current population, geographic and demographic properties at the time of purchase. Any unreserv
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, the deadline for completing the purchase of a Crepe De Licious franchise after paying the $10,000 Territory Reservation Fee is the date specified in the Territory Reservation Agreement. The franchisor accepts the Territory Reservation Fee to hold the designated territory until that date, by which time the franchise purchase must be completed.
If the prospective franchisee does not sign a franchise agreement by the specified date, Crepe De Licious is entitled to retain the entire $10,000 Territory Reservation Fee. This fee serves as consideration for holding the territory, and Crepe De Licious is then free to reserve or sell the territory to another prospective franchisee.
This arrangement is fairly common in franchising. The reservation fee ensures that the franchisor is compensated for the time and opportunity cost of holding a territory for a potential franchisee. It also motivates the prospective franchisee to move forward with the process in a timely manner. Franchisees should carefully consider their ability to meet the deadline before paying the reservation fee, as it is non-refundable if they fail to finalize the franchise agreement by the agreed-upon date.