What is the purpose of the territory reservation fee for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of $10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be
able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the territory reservation fee allows a prospective franchisee to reserve a specific geographic area for their potential Crepe De Licious business for 90 days. This requires paying a non-refundable fee of $10,000 and signing a Territory Reservation Agreement. This agreement is only available after the mandatory federal and state waiting periods, typically 14 days after receiving the FDD.
If the prospective franchisee proceeds to purchase a Crepe De Licious franchise, the $10,000 territory reservation fee is then credited towards the initial franchise fee. The final territory definition will be based on the current population, geographic, and demographic properties at the time of purchase. Any unreserved territory remains available for sale to other franchisees.
If the franchisee does not sign a franchise agreement by the specified date, Crepe De Licious is entitled to retain the entire territory reservation fee as compensation for holding the territory. This allows Crepe De Licious to then offer the territory to other potential franchisees. This reservation provides a limited time for the prospective franchisee to make a final decision while preventing Crepe De Licious from marketing that territory to others.