factual

What debts and obligations must a Crepe De Licious franchisee pay?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

her approval requests under this Agreement and will not unreasonably delay our approvals or disapprovals allowed or required by this Agreement. If you violate any provision of this Section, in addition to all other remedies available to us, you will pay an unauthorized advertising fee of $500 per occurrence to the Advertising Fund to offset the damage caused by your breach.

  • 5.14 Telephone. You will obtain a telephone number for exclusive use in connection with the Franchised Business, and this telephone number will be deemed to be our property.
  • 5.15 Directory Listings. You will obtain and maintain at your expense white pages and yellow pages listings for the Restaurant, Kiosk, or Food Truck, as required by System Standards, and in the form provided by or expressly approved by us, in the principal telephone directory serving your Approved Location. If other Crepe de licious franchisees are served by the same directory, we may require a group listing of all franchised businesses in the area, and, in that case, the costs of the listing will be reasonably allocated among these franchised businesses. You will timely pay your share of these costs.
  • 5.16 Internet Listing. You will not, directly or indirectly, create or maintain an Internet web page, website address or Internet directory listing relating in any way to your Restaurant, Kiosk, or Food Truck, or which uses any Marks. You are prohibited from conducting any aspect of the Franchised Business through the Internet (except email communications). You are strictly prohibited from promoting your Restaurant, Kiosk, or Food Truck and using the Marks in any manner on social media, networking, discount, blogs or other network communications or other online sites, including, but not limited to, Facebook, LinkedIn and Twitter, without our prior written consent. We have the right to review all content on any such online site.
  • 5.17 Digital Signage Displays. You are required to purchase and maintain televisions for digital signage displays as set forth in our Operations Manual and pay all related network set-up fees, annual license fees and annual maintenance fees.
  • 5.18 Hours of Operation. You will keep the Restaurant, Kiosk, or Food Truck open and in normal operation for the minimum hours and/or days as required by the System Standards, to the extent consistent with local law and your lease.
  • 5.19 Conferences. You or your owner or Designated Manager will attend each conference and pay the applicable conference fee, if and when we sponsor a conference.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, a franchisee must fulfill several financial obligations to the franchisor and third parties. These obligations include payments for advertising, directory listings, and transfer fees under certain conditions. Specifically, if a franchisee violates advertising provisions, they may incur an unauthorized advertising fee of $500 per occurrence, payable to the Advertising Fund. Franchisees are also responsible for the costs associated with white and yellow pages listings for their Restaurant, Kiosk, or Food Truck. If Crepe De Licious requires a group listing, the costs will be reasonably allocated among the franchisees served by that directory, and each franchisee must pay their share in a timely manner.

Furthermore, the FDD outlines financial obligations related to the transfer of a franchise. If a franchisee wishes to transfer their franchise to another party, either the franchisee or the proposed transferee must pay a transfer fee of $10,000. However, this fee is reduced to $5,000 if the proposed transferee is an existing Crepe De Licious franchisee. A non-refundable deposit of $1,000 is due upon the request for approval of the transfer. Additionally, before a transfer can be completed, the franchisee must ensure that all amounts owed to Crepe De Licious and its affiliates by the franchisee, their owners, and affiliates are paid in full.

These financial obligations are in addition to the initial franchise fee, ongoing royalties, and other fees detailed elsewhere in the FDD. Prospective franchisees should carefully review all sections of the FDD and discuss these obligations with the franchisor to fully understand the financial commitments involved in operating a Crepe De Licious franchise. Understanding these costs is crucial for budgeting and ensuring the financial viability of the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.