Who has the discretion to use the Advertising Fund for Crepe De Licious?
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. The document states that Crepe De Licious maintains and administers the Advertising Fund, which consists of contributions from all franchisees, set at 3 percent of their gross revenues. While these contributions may be commingled with general funds, they are administratively segregated to form the Advertising Fund.
Crepe De Licious retains the authority to use the Advertising Fund to cover any and all advertising costs for the franchise system as a whole. This means that franchisees do not have direct control over how the advertising funds are spent; instead, Crepe De Licious decides on the advertising strategies and initiatives.
This arrangement is fairly typical in franchising, where the franchisor manages advertising funds to ensure consistent brand messaging and coordinated campaigns. However, it's important for prospective Crepe De Licious franchisees to understand that while they contribute to the fund, the franchisor ultimately decides how those funds are allocated and spent.