To whom is the territory reservation fee paid when opening a Crepe De Licious restaurant?
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 is due before the Franchise Agreement is signed.
This fee reserves a specific territory for the prospective franchisee, preventing Crepe De Licious from establishing another franchise in that area during the reservation period. It is important to note that the Territory Reservation Fee is credited towards the Initial Franchise Fee if you purchase a Franchise and sign a Franchise Agreement.
Paying the territory reservation fee ensures that the franchisee has exclusive rights to a particular geographic area while they prepare to open their Crepe De Licious location. This can be a significant advantage, as it reduces the risk of direct competition from another Crepe De Licious franchise nearby. However, if the franchisee does not proceed with signing the Franchise Agreement, they may forfeit this fee, so it's crucial to carefully consider all aspects of the franchise opportunity before paying the reservation fee.