Do Crepe De Licious or its affiliates currently receive rebates or other consideration from suppliers?

According to Crepe De Licious's 2025 Franchise Disclosure Document, neither Crepe De Licious nor its affiliates currently receive rebates or other consideration from suppliers. However, the FDD states that Crepe De Licious and its affiliates may receive rebates or other consideration from suppliers in the future for products or services that franchisees are required or advised to obtain from approved suppliers. This consideration may include promotional allowances, volume discounts, and other payments.

For a prospective franchisee, this means that while there are no current kickbacks, Crepe De Licious reserves the right to receive financial benefits from suppliers based on franchisee purchases. This practice is common in franchising, as it can create economies of scale and potentially lower costs for the system as a whole. However, it also raises the possibility of conflicts of interest if Crepe De Licious prioritizes suppliers that offer the best rebates to them, rather than those that offer the best value to franchisees.

It's important to note that during the last fiscal year, ended December 31, 2024, Crepe De Licious did derive revenue from rebates from Approved Suppliers of the sale or lease of products or services to franchisees. They derived a total of $39,368 from rebates from Approved Suppliers, which was 10% of their revenue for fiscal year 2024. This indicates that while they may not currently be receiving rebates, they have in the recent past, and the potential for this to resume exists.

Prospective franchisees should inquire about the criteria Crepe De Licious uses to select and approve suppliers, and how they ensure that franchisee interests are protected when negotiating with suppliers. Understanding the potential for these types of arrangements is crucial for assessing the overall cost and value proposition of the Crepe De Licious franchise.