When does the customer accept ownership of product sales from Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Restaurant Food and Beverage Sales For performance obligations related to the sale of food and beverage, control transfers at a point in time. The Restaurant transfers control and records revenue for product sales upon delivery to the customer. The customer accepts ownership at this time.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the customer accepts ownership of food and beverage products upon delivery. The document specifies that for sales of food and beverage items, control is transferred at the point in time when the product is delivered to the customer. At this moment, the customer acknowledges and accepts ownership of the purchased items.
This indicates a standard retail transaction process. Crepe De Licious recognizes revenue for these sales at the point of delivery, aligning with the transfer of control and ownership to the customer. This is a typical practice in the food service industry, where the exchange of goods and payment occurs simultaneously.
For a prospective franchisee, this means that revenue from food and beverage sales is recorded at the time the customer receives their order. This is important for accounting and financial reporting purposes, as it clearly defines when the sale is considered complete and when revenue is recognized by Crepe De Licious.