To whom is the Crepe De Licious Territory Reservation Fee for a Kiosk paid?
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 paid to Crepe De Licious. The fee is a lump sum of $10,000. This fee is due before the Franchise Agreement is signed.
This fee reserves a specific territory for the prospective franchisee before they officially commit to the franchise. By paying this fee to Crepe De Licious, the franchisee secures the exclusive rights to develop a Crepe De Licious Kiosk within that area, preventing the franchisor from granting another franchise in the same location during the reservation period.
It is important to note that the Territory Reservation Fee is credited towards the Initial Franchise Fee if the franchisee proceeds with purchasing a franchise and signing 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 overall franchise fee. This arrangement is relatively common in franchising, as it encourages potential franchisees to commit to a specific territory while providing them with some financial assurance that their investment will contribute to the larger franchise purchase.