What amounts are excluded from the transaction price by Crepe De Licious?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company excludes amounts collected on behalf of third parties from the transaction price. Specifically, revenue is presented net of any sales, use, and excise taxes collected from its customers. This means that when Crepe De Licious reports its revenue, it does not include these taxes in the reported figures.

For a prospective Crepe De Licious franchisee, this is important for understanding how the franchisor calculates and reports its revenue. It clarifies that the sales figures franchisees see do not include taxes, providing a clearer picture of the actual sales generated from food and beverage items. This exclusion aligns with standard accounting practices, ensuring that revenue figures reflect the actual income earned by Crepe De Licious from its operations and franchise activities.

This policy ensures transparency in financial reporting, allowing franchisees and stakeholders to accurately assess the company's financial performance without the distortion of pass-through taxes. Franchisees should be aware of this practice as they manage their own financial reporting and tax obligations, ensuring consistency with the franchisor's accounting methods.