Under the Area Development Agreement, what does Crepe De Licious's site approval indicate?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement and Area Development Agreement, our approval (or failure to disapprove) of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Franchised Restaurant or for any other purpose, or as to any expected level of sales, revenues or profits. Approval by us of the site indicates only that the site meets the minimum requirements for a Crepe Delicious Restaurant site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–40)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, site approval under the Area Development Agreement indicates that the site meets the minimum requirements for a Crepe De Licious Restaurant site. However, the approval does not provide any assurance, representation, or warranty regarding the site's suitability for a Franchised Restaurant or any other purpose. It also does not guarantee any expected level of sales, revenues, or profits.
This means that while Crepe De Licious will review and approve the site, the franchisee ultimately bears the responsibility for ensuring the site is viable and profitable. The franchisor's approval is simply a confirmation that the location aligns with their minimum standards, but it does not act as a guarantee of success.
Prospective franchisees should conduct their own thorough due diligence, including market research and financial projections, to determine if the site is appropriate for their business goals. Relying solely on Crepe De Licious's approval could lead to selecting a location that does not perform as expected. Franchisees should also note that they must secure a lease or binding agreement for the purchase of the approved site on terms acceptable to Crepe De Licious.