Is the territory reservation fee for Crepe De Licious refundable?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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You can reserve a particular geographic territory for a Crepe de licious Business for a period of 90 days by paying us a non-refundable territory reservation fee ("Territory Reservation Fee") of $10,000 before you sign a Franchise Agreement and signing the "Territory Reservation Agreement and Receipt," which is attached as Exhibit G-6 to this Disclosure Document. If you choose to purchase a Crepe de licous Franchise, the Territory Reservation Fee will be applied towards the Initial Franchise Fee. You will only be
able to pay the Territory Reservation Fee and sign the Territory Reservation Agreement and Receipt after you have waited the prescribed federal and state waiting periods (generally 14 calendar days after you have received our Franchise Disclosure Document). The Initial Franchise Fee is due in full at the time you sign the Franchise Agreement(s), and is deemed fully earned by us once paid and is non-refundable. The Territory Reservation Fee is uniform to all franchisees.
If you fail to open your Crepe de licious Business within 12 months of signing the Franchise Agreement, you will be required to pay us an opening extension fee ("Opening Extension Fee") of $250 per week until the Crepe de licious Business is open.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the territory reservation fee is non-refundable. To reserve a specific geographic area for 90 days, a prospective franchisee must pay a $10,000 non-refundable territory reservation fee and sign the Territory Reservation Agreement and Receipt. This must occur before signing the Franchise Agreement, and only after the mandatory federal and state waiting periods have passed, typically 14 days after receiving the Franchise Disclosure Document.
If the prospective franchisee proceeds to purchase a Crepe De Licious franchise, the $10,000 territory reservation fee is credited towards the initial franchise fee. However, if the franchisee does not sign a franchise agreement by the specified date, Crepe De Licious is entitled to retain the entire territory reservation fee as compensation for holding the territory. Crepe De Licious is then free to offer the territory to other potential franchisees.
This arrangement is fairly standard in franchising. The non-refundable nature of the fee incentivizes serious inquiries while compensating Crepe De Licious for the time the territory is held and unavailable to other potential franchisees. Prospective franchisees should carefully consider their interest and readiness before paying the territory reservation fee, as it represents a sunk cost if they choose not to proceed with the franchise.