Does Crepe De Licious accounts receivable bear interest?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company's accounts receivable typically do not bear interest. However, Crepe De Licious may apply a finance charge to receivables that are past due. This policy applies to trade credit, which is generally extended on a short-term basis.

This means that if a franchisee or other entity owes money to Crepe De Licious for a short period, no interest will accrue on that amount. However, if the payment becomes overdue, Crepe De Licious has the option to impose a finance charge. This is a fairly standard practice in franchising and business in general, as it incentivizes timely payments while providing a means for the franchisor to recoup costs associated with delayed payments.

Crepe De Licious also recognizes an expected allowance for credit losses, which is updated to reflect changes in credit risk. This allowance is calculated on a pooled basis for franchisee and corporate receivables, while individual evaluations are conducted for accounts that do not share similar risk characteristics or are considered at risk or uncollectible. This indicates that Crepe De Licious actively manages its accounts receivable and takes steps to account for potential losses.