When is the Crepe De Licious Territory Reservation Fee for a Kiosk 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 payment of $10,000. This fee allows the franchisee to reserve a specific territory before fully committing to the franchise.
It's important to note that this Territory Reservation Fee is credited towards the Initial Franchise Fee if the prospective franchisee proceeds to purchase the franchise and signs the Franchise Agreement. This means that the $10,000 paid for the territory reservation will be deducted from the total Initial Franchise Fee due at signing.
Prospective franchisees should be aware of this payment schedule as they plan their initial investment. Understanding when fees are due helps in managing finances and ensuring that funds are available when required. This up-front payment is a standard practice in franchising, securing the franchisee's exclusive rights to a specific area before the full franchise agreement is in place.