What is the procedure for Crepe De Licious to address a 'Missed Deadline' by an Area Developer?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure by Area Developer to meet a deadline under the Development Schedule (a "Missed Deadline") shall constitute a default under this Agreement.
Franchisor shall, for one (1) Missed Deadline, provide Area Developer with a reasonable opportunity to cure such default by notifying Area Developer in writing of a new date for the Missed Deadline (without change to any other deadline in the Development Schedule).
If Area Developer fails to comply with the Development Schedule by such new deadline, and/or upon the occurrence of another Missed Deadline, Franchisor, in its discretion, may terminate this Agreement and all rights granted hereunder without affording Area Developer any further opportunity to cure the default, effective immediately upon the delivery of written notice to Area Developer (in the manner set forth in Section 10 of this Agreement); or Franchisor, in its discretion, may elect, in lieu of terminating this Agreement, to take any of the actions described in Section 6.5 below.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, a 'Missed Deadline' by an Area Developer, which is defined as failing to meet a deadline under the Development Schedule, constitutes a default under the Area Development Agreement. For the first instance of a Missed Deadline, Crepe De Licious will provide the Area Developer a chance to rectify the situation. This involves written notification of a new deadline, which does not alter any other deadlines in the Development Schedule.
However, if the Area Developer fails to meet this new deadline, or if another Missed Deadline occurs, Crepe De Licious has the discretion to take immediate action. Crepe De Licious can terminate the Area Development Agreement and all rights granted to the Area Developer without any further opportunity to cure the default. This termination becomes effective immediately upon written notice to the Area Developer.
Alternatively, instead of terminating the agreement, Crepe De Licious can choose to pursue other actions as described in Section 6.5 of the agreement. It is important for prospective Area Developers to understand the implications of failing to meet development deadlines and to be aware of the potential consequences, including termination of the agreement and loss of development rights.