Are Crepe De Licious franchisor-owned outlets required to contribute to the Advertising Fund?

According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisor-owned outlets may, but are not required to, contribute to the Advertising Fund on the same basis as franchisees. This means that while franchisees are mandated to pay an advertising fee, Crepe De Licious retains the discretion to decide whether its own outlets will contribute.

Franchisees are required to pay an Advertising Fee of 3% of their monthly Gross Revenues, which goes towards the national Advertising Fund. This fund is used for marketing, advertising, and promotional activities to promote the Crepe De Licious brand. The franchisor has complete discretion over how the Advertising Fund is utilized and is not obligated to ensure that advertising expenditures directly benefit each franchisee or their specific location.

This policy regarding franchisor-owned outlets could impact the overall funds available for advertising and promotion. If franchisor-owned outlets do not contribute, the financial burden falls solely on the franchisees. A prospective franchisee should inquire about the franchisor's historical contributions, or lack thereof, to the Advertising Fund from its own outlets to understand the potential financial implications and ensure transparency in advertising fund management.