Who are the payments for leasehold improvements for a Crepe De Licious franchise paid to?
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 | ||||
| Design Fee(2) | $5,000 | $10,000 | As incurred | Upon ordering designs | Us |
| Mechanical, | $5,000 | $25,000 | As incurred | As agreed | Third Parties |
| Electrical, | |||||
| Plumbing, and | |||||
| Architectural | |||||
| Fees(3) | |||||
| Real Estate Agent | $10,000 | $15,000 | As incurred | As agreed | Third Parties |
| Fees(4) | |||||
| Rent, Security Deposit, Utility Deposit(5) | $1,500 | $5,000 | As incurred | As agreed | Landlord, Utility Companies |
| Additional | $650 | $15,000 | As incurred | As agreed | Landlord |
| Storage(5) | |||||
| Leasehold Improvements(6) | $95,000 | $200,000 | As incurred | As agreed | Landlord, Contractors, Other Suppliers |
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, leasehold improvement costs, which range from $95,000 to $200,000, are paid to the Landlord, Contractors, or Other Suppliers. These payments are made as incurred and as agreed upon. Leasehold improvements encompass expenses related to designing and building out the Restaurant or Kiosk, including plumbing, electrical work, and remodeling.
The FDD notes that the estimate for leasehold improvements does not reflect any landlord contribution or tenant improvement allowance that a franchisee may negotiate. The actual costs can vary significantly based on factors such as the size, condition, and location of the leased premises, the supply and demand for materials and labor in the local area, local building and fire code requirements, and the specific terms of the lease regarding construction, signage, and inflation.
Prospective Crepe De Licious franchisees should carefully consider these potential costs and negotiate with landlords to potentially offset some of these expenses through tenant improvement allowances or build-to-suit lease agreements. It is also advisable to obtain multiple quotes from contractors and suppliers to ensure competitive pricing and to thoroughly review all lease terms to understand the financial obligations related to leasehold improvements.