What is the relationship between the expiration date of the Crepe De Licious agreement and the final franchise agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee to reserve a territory for a Crepe de licious Franchise and Franchisor to acknowledge receipt of Prospective Franchisee's territory reservation fee ("Territory Reservation Fee"). A non-refundable Territory Reservation Fee of $10,000 is required to reserve such territory for purchase.
Franchisor hereby accepts the Territory Reservation Fee in the amount of $10,000 to secure a hold on the territory designated below until [Date], by which time the purchase of the Crepe de licious Franchise purchase is to be completed:
[Description of territory to be held]
Final territory definition will be based on the current population, geographic and demographic properties at the time of purchase. Any unreserv
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the expiration date of the territory reservation agreement is directly tied to the completion of the final franchise agreement. Specifically, a prospective franchisee pays a $10,000 Territory Reservation Fee to hold a designated territory until a specified date.
If the prospective franchisee does not sign the franchise agreement by this date, Crepe De Licious has the right to retain the entire Territory Reservation Fee. This fee serves as consideration for holding the territory and compensates Crepe De Licious for the time the territory was reserved and unavailable to other potential franchisees. After this date, Crepe De Licious is free to reserve or sell the territory to another prospect.
This arrangement creates a deadline for the prospective franchisee to make a final decision about purchasing the franchise. It also protects Crepe De Licious by ensuring that territories are not held indefinitely without a commitment from the prospective franchisee. This is a fairly standard practice in franchising, as franchisors need to manage their territories effectively and avoid losing potential revenue due to delays.