When is the management fee for a Crepe De Licious franchise incurred?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Management Fee | $500 per day, plus expenses | As incurred | Payable if we manage the Crepe de licious Business because you are in breach of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the management fee is incurred if Crepe De Licious manages the business due to the franchisee's breach of the Franchise Agreement. The fee is $500 per day, plus any expenses incurred by Crepe De Licious during the management period. The due date for this fee is listed as "as incurred."
This means that a Crepe De Licious franchisee could face significant costs if they fail to comply with the terms of the Franchise Agreement, leading to Crepe De Licious stepping in to manage the business. In addition to the daily management fee of $500, the franchisee would also be responsible for covering any expenses that Crepe De Licious incurs while managing the location. These expenses are not defined in the excerpt.
It is important for prospective franchisees to understand the specific circumstances that could trigger the management fee and to carefully review the Franchise Agreement to ensure they can meet all obligations. Maintaining compliance with the Franchise Agreement is crucial to avoid this potentially substantial expense. Franchisees should also clarify what type of expenses could be incurred during the management period and if there is a limit to those expenses.