How is the Crepe De Licious Development Area defined, as referenced in Section 1.1?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
l be operated pursuant to a separate Crepe Delicious Holding USA, Inc. Franchise Agreement (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
- 1.1.2 For each Franchised Restaurant to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Restaurant in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
- 1.1.3 Each Franchised Restaurant developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area").
- 1.2 Development Area. Except as otherwise set forth herein (including, without limitation, the rights retained by Franchisor as described in Section 1.3), during the term of this Agreement, and so long as Area Developer is in compliance with its obligations under this Agreement and all of the Franchise Agreements between Area Developer (including any affiliate of Area Developer), Franchisor shall not establish or operate, or license anyone other than Area Developer to establish or operate, a Crepe Delicious Restaurant under the Marks and System at any location that is within the Development Area.
- 1.3 Franchisor's Reserved Rights. Notwithstanding anything to the contrary, Franchisor retains the following rights, among others, on any terms and conditions Franchisor deems advisable, and without granting Area Developer any rights therein:
- 1.3.1 To own, acquire, establish, and/or operate and license others to establish and operate, Crepe Delicious Restaurants under the System at any location outside the Development Area notwithstanding their proximity to the Development Area or their actual or threatened impact on sales or development of any of the Franchised Restaurant;
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, the Development Area is defined in Paragraph 2 of Exhibit A of the Area Development Agreement. Each Crepe De Licious restaurant developed under the agreement must be at a specific location designated in the Franchise Agreement, within this Development Area.
Crepe De Licious grants the Area Developer certain development rights within the Development Area. So long as the Area Developer complies with the Area Development Agreement and all Franchise Agreements, Crepe De Licious will not establish, operate, or license anyone other than the Area Developer to establish or operate a Crepe De Licious restaurant within the Development Area.
However, Crepe De Licious retains specific rights, including the right to operate or license others to operate Crepe De Licious restaurants outside the Development Area, regardless of their proximity or impact on the Area Developer's restaurants. Crepe De Licious also reserves the right to operate non-store-front businesses under the Crepe De Licious brand, or businesses under different brands, at any location, including within the Development Area. They can also operate Crepe De Licious restaurants at Non-Traditional Sites, such as parks, stadiums, airports, and shopping centers, within or outside the Development Area.