What is the minimum transfer fee for the Crepe De Licious Area Development Agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise Agreement executed simultaneously with this Agreement that Franchisor deems applicable to a proposed transfer under this Agreement.
- 7.3 Simultaneous Transfers. Area Developer understands and acknowledges that any consent to a transfer of this Agreement shall, unless waived, be conditioned on, among other factors, the requirement that the proposed transfer of this Agreement is to be made in conjunction with a simultaneous transfer of all Franchise Agreements executed pursuant to this Agreement to the same approved transferee.
- 7.4 Transfer Fee. At the request of Franchisor, Area Developer shall pay a transfer fee of an amount equal to Ten Thousand Dollars ($10,000) for each Franchised Restaurant that remains to be developed and opened in order to satisfy the Development Schedule, but not less than fifty percent (50%) of the Area Development Fee paid. Additionally, for any Franchise Agreements executed pursuant to this Agreement that are transferred, the transfer fee due under such Franchise Agreement(s) shall be paid to Franchisor pursuant to the terms of such Franchise Agreement(s).
- Transfer to Entity Formed for by Area Developer. Notwithstanding anything to the contrary in this Section 7, if Area Developer is an individual and seeks to transfer this Agreement to a corporation, partnership, or limited liability company formed for the convenience of ownership, the conditions of Sections 7.4 shall not apply, and Area Developer may undertake such transfer, provided that: (a) Area Developer owns one hundred percent (100%) of the equity interest in the transferee entity; (b) Area Developer
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the transfer fee for the Area Development Agreement is $10,000 for each franchised restaurant that remains to be developed and opened to satisfy the development schedule. However, the minimum transfer fee is 50% of the Area Development Fee paid.
For a prospective Crepe De Licious area developer, this means that if they decide to transfer their agreement to another party, they will incur a transfer fee. The exact amount will depend on how many restaurants are still left to be developed under the original development schedule. This fee is in addition to any transfer fees that may be due under individual Franchise Agreements executed under the Area Development Agreement.
It is important to note that the transfer of the Area Development Agreement may be conditional upon the simultaneous transfer of all Franchise Agreements executed under it to the same approved transferee. This requirement could complicate the transfer process and increase the overall cost. However, if the Area Developer is an individual transferring the agreement to a company they formed where they own 100% of the equity, the transfer fee conditions do not apply.