factual

What is the geographic area defined as the 'Territory' for a Crepe De Licious franchise?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

If a particular site for the Restaurant, Kiosk, or Food Truck has been selected and approved at the time of the signing this Agreement, it shall be entered on Attachment A-1 as the Approved Location and the Approved Location shall have the Territory listed in Attachment A-1. If a particular site has not been selected and approved at the time of the signing this Agreement, Section 3 of this Attachment will describe the location in general terms below in the "General Description." The General Description does not confer any territory rights to you and is only used for a reference. We may sell other franchised locations in the area in the General Description.

After we have approved a location for your Restaurant, Kiosk, or Food Truck, we shall complete the Approved Location and the Territory in Attachment A-1. As the Territory is dependent on the location of the Restaurant, Kiosk, or Food Truck, we will present you with the Territory upon the identification of the site for the Restaurant, Kiosk, or Food Truck. If you do not wish to accept the Territory, you may choose another site location and we will present you with another Territory based on the site selected.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious FDD, the specific territory granted to a franchisee is defined in the franchise agreement and its attachments. Attachment A to the franchise agreement addresses the approved location and territory. If a location is approved when signing the agreement, it will be listed on Attachment A-1, along with its territory. If a location hasn't been approved yet, Attachment A will include a general description of the area, but this description doesn't grant any territorial rights. Crepe De Licious retains the right to sell other franchises in that general area.

After Crepe De Licious approves a location, they will complete Attachment A-1 with the approved location and territory details. Because the territory depends on the restaurant, kiosk, or food truck's location, Crepe De Licious will present the territory details upon site identification. The franchisee can then either accept the territory or choose another site, which would lead to a different territory offer.

This approach means that a prospective Crepe De Licious franchisee won't know the exact territory until a specific location is approved. This is a critical consideration, as the territory determines the franchisee's exclusive rights and potential market. The franchisee bears the risk of investing time and resources into site selection without knowing the precise boundaries of their protected area. It is common practice in the franchise industry to define territories based on factors like population density, demographics, and market studies, but the FDD suggests that the final territory definition for Crepe De Licious is highly dependent on the chosen location and determined at the time of purchase.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.