To whom is the Crepe De Licious initial franchise fee paid?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Paid | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise | $35,000 | $35,000 | Lump sum | Upon signing of | Us |
| Fee(1) | Franchise Agreement | ||||
| Territory | $10,000 | $10,000* | Lump Sum | Due before Franchise | Us |
| Reservation Fee(1) | Agreement is signed |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 18–25)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the initial franchise fee is paid to the franchisor, referred to as "Us" in the document. This fee is a one-time payment required when signing the Franchise Agreement. The FDD indicates that the initial franchise fee for a restaurant ranges from $35,000 to $35,000. Additionally, a territory reservation fee, ranging from $10,000 to $10,000, is also paid to Crepe De Licious before the Franchise Agreement is signed.
This initial franchise fee serves as compensation for the pre-opening assistance that Crepe De Licious provides to help franchisees establish their business. It covers the support and guidance offered by the franchisor during the initial setup phase. It's important to note that this fee, like other payments made to Crepe De Licious or its affiliates, is generally non-refundable under any circumstances once paid.
Prospective franchisees should be aware that the initial franchise fee is just one component of the overall initial investment. Other fees, such as the design fee, and other expenses are paid to either Crepe De Licious or third parties. Understanding where each payment is directed is crucial for budgeting and financial planning. Franchisees should carefully review Item 7 of the FDD, which provides a detailed breakdown of the estimated initial investment and specifies to whom each payment is to be made.