What is the Crepe De Licious franchisee's obligation regarding the payment of license fees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee 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 unreserved territory will remain available for sale to other franchisees.
Having paid the $10,000 Territory Reservation Fee with this Agreement, Prospective Franchisee will then pay the remaining balance of the initial franchise fee upon acceptance of the franchise agreement for the Crepe de l
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, a prospective franchisee must pay a $10,000 territory reservation fee upon signing the agreement. Subsequently, upon acceptance of the franchise agreement, the franchisee must pay the remaining balance of the initial franchise fee.
The balance due for the Crepe De Licious franchise will be based on the then-current initial franchise fee, as outlined in the current franchise agreement. However, if the prospective franchisee chooses not to sign a franchise agreement by a specified date, Crepe De Licious has the right to retain the entire 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.
The FDD also states that the prospective franchisee acknowledges waiting the required federal and state waiting periods, but no sooner than 14 calendar days after receiving Crepe De Licious's Franchise Disclosure Document, before signing the agreement and paying the territory reservation fee.