Who has the discretion to determine how the Crepe De Licious Advertising Fund is used?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fees The Company maintains and administers an advertising fund (the "Advertising Fund"). The advertising contributions may be commingled in the general funds, but administratively segregated to form the Advertising Fund. All franchisees must contribute to the fund at the same rate of 3 percent of their respective gross revenues. The Advertising Fund may be used by the Company, in its sole discretion, to meet any and all costs of advertising for the franchise's concept as a whole.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company has the sole discretion to determine how the Advertising Fund is used. All Crepe De Licious franchisees must contribute to the fund at a rate of 3 percent of their gross revenues. The advertising contributions may be commingled in the general funds, but administratively segregated to form the Advertising Fund.
The Advertising Fund can be used by Crepe De Licious to cover any and all costs of advertising for the franchise concept as a whole. This means that franchisees do not have direct control over how their advertising contributions are spent.
This arrangement is common in franchising, where the franchisor manages advertising to maintain brand consistency and maximize impact. However, it's important for prospective Crepe De Licious franchisees to understand that they are required to contribute to the Advertising Fund and that the company has full authority over how those funds are used.