When is the Crepe De Licious territory reservation fee due?
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 |
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, the territory reservation fee is due before the Franchise Agreement is signed. The fee itself is a lump sum of $10,000. This fee reserves a specific territory for the prospective franchisee, preventing Crepe De Licious from granting another franchise in that area during the reservation period.
It's important to note that this fee is paid directly to Crepe De Licious. The FDD indicates that the territory reservation fee is credited towards the initial franchise fee if the franchisee proceeds to sign a Franchise Agreement. This means that the $10,000 paid for the territory reservation is not an additional cost but rather a part of the initial franchise fee.
Prospective franchisees should confirm the duration of the territory reservation and the conditions under which the fee is credited towards the initial franchise fee. Understanding these terms is crucial before paying the reservation fee to ensure that the territory is adequately protected and that the fee contributes to the overall franchise investment as expected.