How is the final territory definition determined for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
) 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 Crepe De Licious's 2025 Franchise Disclosure Document, the final territory definition is determined by the current population, geographic, and demographic properties at the time of purchase. This means that the specific area granted to a franchisee is not fixed at the outset but is subject to change based on conditions at the time the franchise agreement is finalized. Any territory that is not reserved remains available for sale to other franchisees.
To secure a territory, a prospective Crepe De Licious franchisee must pay a $10,000 Territory Reservation Fee. This fee reserves the territory until a specified date, by which the franchise purchase must be completed. The balance due for the Crepe De Licious franchise will be based on the initial franchise fee at the time of purchase, as outlined in the current franchise agreement.
If the prospective franchisee does not sign a franchise agreement by the agreed-upon date, Crepe De Licious is entitled to retain the entire $10,000 Territory Reservation Fee as compensation for holding the territory. Following this, Crepe De Licious is free to reserve or sell the territory to another potential franchisee. This arrangement underscores the importance of being prepared to finalize the franchise agreement within the specified timeframe after paying the reservation fee.