What factors does Crepe De Licious rely on when granting rights to the Area Developer?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company grants development rights to an Area Developer based on the terms and conditions outlined in the Area Development Agreement. Specifically, the Area Developer undertakes the obligation to develop no less than the number of Crepe De Licious Restaurants as set forth in Exhibit A of the agreement. This exhibit likely contains a development schedule specifying deadlines for executing Franchise Agreements for each restaurant.

The agreement stipulates that each Franchised Restaurant must be at a specific location designated in the Franchise Agreement, within the Development Area described in Exhibit A. So long as the Area Developer complies with their obligations under the Area Development Agreement and all Franchise Agreements, Crepe De Licious will not establish or license anyone else to establish or operate a Crepe De Licious Restaurant within the Development Area.

However, Crepe De Licious retains certain rights, including the right to operate or license others to operate Crepe De Licious Restaurants outside the Development Area, regardless of their proximity to the Development Area or impact on the Area Developer's sales or development. Crepe De Licious also reserves the right to operate non-store-front businesses under the Marks within or outside the Development Area. These reserved rights could impact the Area Developer's business, as Crepe De Licious can establish alternative channels of distribution or operate businesses offering similar products and services, even within the Area Developer's territory.