Under what condition is the initial franchise fee for Crepe De Licious not payable?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee Deferral: Item 5 of the FDD and the Franchise Agreement are revised to state: Based on the Franchisor's financial condition, the Minnesota Department of Commerce has required a financial assurance.
Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the Franchise Agreement.
This provision supersedes any other term of any document executed with the franchise.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the initial franchise fees and payments can be deferred under specific conditions. If the Minnesota Department of Commerce requires a financial assurance due to Crepe De Licious's financial condition, all initial fees and payments owed by franchisees will be deferred. This deferral lasts until Crepe De Licious completes its pre-opening obligations as outlined in the Franchise Agreement.
This condition is outlined in an addendum that supersedes any conflicting terms in the Franchise Disclosure Document or Franchise Agreement. This means that if the Minnesota addendum is applicable, the standard payment schedule for initial fees is overridden by the deferral provision.
For a prospective franchisee, this deferral could significantly reduce the upfront financial burden of starting a Crepe De Licious franchise. However, it is crucial to understand what constitutes the completion of Crepe De Licious's pre-opening obligations, as that will trigger the requirement to pay the deferred fees. Franchisees should also confirm whether the Minnesota addendum applies to their specific situation, as it is only applicable if checked and incorporated into the franchise agreement.