What is the definition of 'Advertising Fund Contribution' for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.15 Advertising Fund. We have established an advertising and marketing fund for Franchises ("Advertising Fund").
We require you to pay an advertising fee in an amount of three percent (3%) of your Gross Revenues, which you must contribute to the Advertising Fund.
Your Advertising Fund Contribution will be due at the same time and in the same manner as the Royalty Fee.
Franchises owned by us or our affiliates are not obligated to contribute to the Advertising Fund but may do so on a voluntary basis.
We have complete discretion on how the Advertising Fund will be utilized.
The Advertising Fund may allocate resources to advertise locally, regionally, and/or nationally, in printed
materials, on radio, on television, and/or on the Internet, in our sole discretion. We may reimburse ourselves, or authorized representatives or our affiliates from the Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other direct or indirect expenses associated with the programs funded by the Advertising Fund. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Advertising Fund for advertising that is principally a solicitation for the sale of franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing. We may at any time defer or reduce a Franchisee's Advertising Fund Contributions and, upon 30 days' prior written notice to you, reduce or suspend Advertising Fund Contributions and operations for one (1) or more periods of any length and terminate and/or reinstate the Advertising Fund. If we terminate the Advertising Fund, we will distribute all unused contributions to contributing Franchisees, and to us or our affiliates, in proportion to respective contributions during the preceding 24-month period.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the Advertising Fund Contribution is defined as a mandatory fee franchisees must pay, set at three percent (3%) of their Gross Revenues. This contribution is directed to the Advertising Fund, which Crepe De Licious has established for marketing and advertising purposes. The payment is due at the same time and in the same manner as the Royalty Fee.
Crepe De Licious has complete discretion over how the Advertising Fund is utilized, including allocating resources for local, regional, and national advertising through various mediums such as printed materials, radio, television, and the Internet. The company may also use the fund to reimburse themselves or their affiliates for administrative costs, audits, accounting, legal expenses, taxes, and other expenses associated with the programs funded by the Advertising Fund.
Franchises owned by Crepe De Licious or its affiliates are not obligated to contribute to the Advertising Fund but may do so voluntarily. Crepe De Licious is not obligated to spend any amount on advertising in the geographical area where a franchisee is located. However, if the Advertising Fund is terminated, all unused contributions will be distributed to contributing franchisees, as well as to Crepe De Licious and its affiliates, in proportion to their respective contributions during the preceding 24-month period. Crepe De Licious also retains the right to defer, reduce, or suspend Advertising Fund Contributions and operations with prior written notice.