What is excluded from Gross Revenues when calculating the Crepe De Licious Royalty Fee?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenues are deemed received by you at the time the products or services or products from which they were derived are delivered or rendered, or at the time the relevant sale takes place, whichever occurs first, regardless of whether final payment (e.g., collection on an account receivable) actually has been received by you.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the excerpt provided does not specify any exclusions from Gross Revenues when calculating the royalty fee. The document defines when Gross Revenues are deemed to be received but does not list any deductions or exclusions.
For a prospective Crepe De Licious franchisee, this means that the royalty fee, is calculated on all revenue generated by the business. This could include revenue from dine-in sales, take-out orders, catering services, and any other source of income related to the Crepe De Licious business.
It is important for potential franchisees to have a clear understanding of how Gross Revenues are defined and calculated, as this directly impacts the amount of royalty fees they will owe to Crepe De Licious. A prospective franchisee should ask the franchisor for a comprehensive list of any allowable deductions or exclusions from Gross Revenues to accurately forecast their potential earnings and royalty obligations.