Will the territory be different when a Crepe De Licious franchise is extended?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
) its intent to purchase a Crepe de licious Franchise. Prospective Franchisee and Franchisor desire to enter into this Territory Reservation Agreement and Receipt ("Agreement") in order for Prospective Franchisee 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)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the territory definition is determined by the current population, geographic, and demographic properties at the time of purchase. Any unreserved territory remains available for sale to other franchisees. This indicates that the territory granted to a franchisee may be subject to change at the time of renewal or extension, as it depends on the prevailing conditions and the availability of unreserved areas.
When a prospective Crepe De Licious franchisee reserves a territory, they must pay a $10,000 Territory Reservation Fee. The balance of the initial franchise fee is due upon acceptance of the franchise agreement. If the prospective franchisee does not sign the franchise agreement by the specified date, Crepe De Licious has the right to retain the entire Territory Reservation Fee and may sell the territory to another prospect. This highlights the importance of understanding the terms and conditions related to territory reservation and the potential loss of the reservation fee if the agreement is not finalized.
Crepe De Licious retains the right to operate or license others to operate businesses using their marks and system outside the franchisee's territory, regardless of proximity. They can also utilize third-party delivery and ghost kitchen companies within or adjacent to the franchisee's territory without compensating the franchisee for sales occurring within their territory. Additionally, Crepe De Licious can sell proprietary items through various retail locations within or outside the territory. These provisions emphasize that the franchise is non-exclusive, and the franchisor has broad rights to expand its business through various channels, potentially impacting the franchisee's business.