What is the consequence if a Crepe De Licious franchisee violates any provision in Section 5.13?

Based on the 2025 Crepe De Licious Franchise Disclosure Document, if a franchisee violates any provision within Section 5.13 of the franchise agreement, they will be required to pay an unauthorized advertising fee. This fee is set at $500 per occurrence and is payable to the Advertising Fund. This fee is intended to offset any damage caused by the franchisee's breach of the agreement.

This clause highlights the importance Crepe De Licious places on standardized marketing and advertising practices across its franchise network. By mandating this fee, Crepe De Licious aims to ensure that franchisees adhere to approved marketing strategies and do not engage in unauthorized advertising that could potentially harm the brand's image or create inconsistencies in messaging. The advertising fund is used for the benefit of all franchisees, so unauthorized advertising could take away from the collective marketing efforts.

For a prospective Crepe De Licious franchisee, this means understanding and strictly adhering to the franchisor's marketing guidelines is crucial. Before undertaking any advertising or promotional activities, franchisees must seek and obtain express written consent from Crepe De Licious. Failure to do so could result in the imposition of the $500 fee for each instance of non-compliance, which could quickly add up and impact the franchisee's profitability. Franchisees should familiarize themselves with what constitutes a violation of Section 5.13 to avoid incurring these fees.