Who has the discretion to use the Crepe De Licious Advertising Fund?
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. The Company has determined the advertising services provided to franchisees are highly interrelated with the franchise right and therefore not distinct. As a result, revenues for advertising services are recognized when the related revenue occurs. Revenues for these services are typically billed in the first week of the month and paid within thirty days. These revenues are presented as franchise contributions for advertising and other services. Expenses incurred to provide these services are presented as Franchise advertising expense and other services.
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 sole discretion over the Advertising Fund. All Crepe De Licious franchisees must contribute 3 percent of their gross revenues to this fund.
The Advertising Fund is maintained and administered by the company, and while the contributions may be commingled with general funds, they are administratively segregated to form the Advertising Fund. This fund can be used to cover any and all costs of advertising for the Crepe De Licious franchise concept as a whole.
This arrangement means that franchisees are required to contribute to the advertising fund but do not have direct control over how the funds are spent. The Crepe De Licious franchisor has the authority to decide how the advertising money is allocated and used to promote the brand. Prospective franchisees should consider this when evaluating the franchise opportunity, as they will want to ensure they are comfortable with the franchisor's approach to advertising and marketing.