To whom is the territory reservation fee paid when opening a Crepe De Licious franchise?
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 the franchisor, referred to as "Us" in the document. This fee, which ranges from $10,000 to $10,000, is a lump sum payment that must be paid before the Franchise Agreement is signed.
The territory reservation fee secures a specific geographic area for the prospective franchisee, preventing Crepe De Licious from granting another franchise in that area during the reservation period. This fee is typically credited towards the initial franchise fee if the franchisee proceeds with signing the Franchise Agreement.
Paying the territory reservation fee is a crucial step for franchisees who want to secure a specific location. It ensures that they have the exclusive right to develop a Crepe De Licious franchise in that territory, providing a competitive advantage and protecting their investment. However, it's important to note that this fee is non-refundable, so franchisees should carefully evaluate the location and market potential before paying the fee.