Under what conditions can Crepe De Licious terminate the Area Development Agreement with cause?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Area Development Agreement | Summary |
|---|---|---|
| e Termination by franchisor | Section 6 | We can terminate if you default. |
| with cause | ||
| f “Cause” defined – curable defaults | Sections 6.3 and 6.4 | All other defaults not specified in Sections 6.1 and 6.2 of Area Development Agreement. |
| g “Cause” defined – non- curable defaults | Sections 6.1 and 6.2 | Bankruptcy, termination of any individual Franchise Agreement for a Franchised Store operated by you or a person or entity affiliated with you, conviction of felony, and improper transfer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the franchisor can terminate the Area Development Agreement with cause if the area developer defaults. The definition of 'cause' is further broken down into curable and non-curable defaults.
Non-curable defaults, which allow for immediate termination, include events such as the area developer's bankruptcy, termination of any individual Crepe De Licious Franchise Agreement for a store operated by the developer or an affiliated entity, conviction of a felony, and improper transfer of the Area Development Agreement.
Curable defaults are defined as all other defaults not specified as non-curable defaults. The FDD does not provide further details on what constitutes a curable default. A prospective franchisee should seek clarification from Crepe De Licious regarding what specific actions or failures would be classified as curable defaults under the Area Development Agreement.