Are all Crepe De Licious franchisees required to contribute to the Advertising Fund on the same basis?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
We require you to pay an advertising fee ("Advertising Fee") in an amount of three percent (3%) of your monthly Gross Revenues for the creation of a national advertising fund ("Advertising Fund"). You must pay the Advertising Fee at the same time that you pay your Royalty Fee, based on the Gross Revenues you generated in the previous reporting period.
Your contribution to the Advertising Fund will be in addition to all other advertising requirements set out in this Item 11. Each franchisee will be required to contribute to the Advertising Fund, but certain franchisees may contribute on a different basis, depending on when they signed their Franchise Agreement. Franchisor-owned outlets may, but are not required to, contribute to the Advertising Fund on the same basis as franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–40)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, all franchisees are required to contribute to the Advertising Fund, but some may contribute on a different basis. The amount each franchisee contributes depends on when they signed their Franchise Agreement. Franchisor-owned outlets may, but are not required to, contribute to the Advertising Fund on the same basis as franchisees.
The standard advertising fee is 3% of monthly Gross Revenues. This fee is paid at the same time as the Royalty Fee, based on the Gross Revenues from the previous reporting period. This contribution is in addition to any other advertising requirements outlined in Item 11 of the FDD.
This means that a prospective Crepe De Licious franchisee needs to understand the specific terms of the Franchise Agreement they are offered, as the advertising contribution basis may vary. It's important to clarify with Crepe De Licious the exact advertising fee structure applicable to their specific franchise agreement to accurately forecast expenses.