factual

Under what agreement might Crepe De Licious offer operations and management services?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

In some cases, We may offer you operations and management services. Under an operations or management service agreement ("Management Agreement"), you will remain in overall control of the Crepe Delicious Business to direct and manage it while the day to day functions are handled by an approved third party operations and management company for a certain management fee. This third party management company will serve as the Designated Manager and have responsibility for all day to day operations and tasks to run the Crepe Delicious Business. The current form of this Management Agreement is found in Exhibit G.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENT, PREDECESSORS, AND AFFILIATES (FDD pages 9–11)

What This Means (2025 FDD)

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company may offer operations and management services under what is termed a "Management Agreement." Under this agreement, the franchisee retains overall control of their Crepe De Licious business, directing and managing it, while the day-to-day functions are handled by an approved third-party operations and management company. This third-party company serves as the Designated Manager and is responsible for all daily operations and tasks necessary to run the Crepe De Licious business.

This arrangement is beneficial for franchisees who may lack the time, expertise, or desire to handle the daily grind of running the business. It allows them to maintain ownership and strategic oversight while delegating operational responsibilities to a specialized management company. However, it's important to note that this service comes with a management fee, which would impact the overall profitability of the franchise. The specific details of this fee and the terms of the Management Agreement are outlined in Exhibit G of the FDD.

Prospective franchisees should carefully review Exhibit G to understand the full scope of services provided under the Management Agreement, the associated costs, and the responsibilities of both the franchisee and the management company. It's also crucial to evaluate the reputation and track record of the approved third-party operations and management company to ensure they are capable of effectively managing the Crepe De Licious business. This option provides flexibility for franchisees but requires careful consideration of the financial implications and the selection of a competent management partner.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.