factual

If Crepe De Licious terminates the agreement, is this in addition to other remedies available to them?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 6.7 Liquidated Damages. Upon the Franchisor's termination of this Agreement in accordance with Section 6 and the terms of this Agreement, the Area Developer shall pay to the Franchisor within 30 days of the date of the termination, as liquidated damages for the premature termination of this Agreement and not as a penalty, an amount equal to one-third (1/3) the Area Developer Fee payable to the Franchisor based this Agreement.

The Area Developer acknowledges and agrees that such liquidated damages are a reasonable approximation of the damages the Franchisor will incur resulting from the premature termination of this Agreement as a result of breach by the Area Developer, are appropriate because actual damages incurred by the Franchisor will be difficult or impossible to ascertain, are not a penalty, and shall not affect the Franchisor's right to, and are not in lieu of, any other payment or remedy, damages or relief to the Franchisor.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, if the Franchisor terminates the Area Developer Agreement, the Area Developer is required to pay liquidated damages. These damages are equal to one-third of the Area Developer Fee, payable within 30 days of termination.

Crepe De Licious specifies that these liquidated damages are not a penalty but a reasonable approximation of the damages the Franchisor will incur due to the premature termination. The FDD states that actual damages are difficult to ascertain.

Importantly, the agreement specifies that the liquidated damages do not affect Crepe De Licious's right to, and are not in lieu of, any other payment, remedy, damages, or relief available to the Franchisor. This means that Crepe De Licious retains the right to pursue additional legal or equitable remedies beyond the liquidated damages payment.

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.