If Crepe De Licious establishes an advertising fund, how will that fund be used?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ame basis as franchisees.
The Advertising Fund will be administered by us, or one of our affiliates or designees, in our discretion, and one or more franchisees. We may use a professional advertising agency or media buyer to assist us. The Advertising Fund will be in a separate bank account, commercial account, or savings account.
We have complete discretion on how the Advertising Fund will be utilized. We may use the Advertising Fund for local, regional, or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, the development of technology for the System, and any other purpose to promote the Crepe de licious brand. We may reimburse ourselves, our authorized representatives, or our affiliates from the Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting, and legal
expenses, taxes, and all other direct or indirect expenses associated with the programs funded by the Advertising Fund. We do not guarantee that advertising expenditures from the Advertising Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Advertising Fund contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement indicating "Franchises Available" or similar phrasing, or include information regarding acquiring a Franchise on or as a part of materials and items produced by or for the Advertising Fund.
We assume no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Advertising Fund or to maintain, direct, or administer the Advertising Fund. Any unused funds in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Advertising Fund on any terms we deem reasonable.
The Advertising Fund is not audited. We will provide an annual accounting for the Advertising Fund that shows how the Advertising Fund proceeds have been spent for the previous year upon written request. We collected $72,857 in Advertising Fund Contributions during our last fiscal year, ended December 31, 2024 and spent a total of $72,614.50. We allocated this in the following: Administrative and Payroll – 98%, Ad Placements – 1.7%, Ad Marketing and Design – .5%, Other – 0
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, if an advertising fund is established, it will be administered by Crepe De Licious, its affiliates, or designees, with the possible involvement of franchisees. The franchisor may also use a professional advertising agency or media buyer. The funds will be kept in a separate bank, commercial, or savings account.
Crepe De Licious has complete discretion over how the Advertising Fund is used. The fund may be used for local, regional, or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, and the development of technology for the Crepe De Licious system. It can also be used for any other purpose to promote the Crepe De Licious brand. Crepe De Licious can reimburse itself, its representatives, or affiliates for administrative costs, audits, accounting, bookkeeping, reporting, legal expenses, taxes, and other direct or indirect expenses related to the programs funded by the Advertising Fund.
The FDD specifies that Crepe De Licious does not guarantee that advertising expenditures will directly benefit any franchisee, or that any specific amount will be spent in a franchisee's geographical area. While the Advertising Fund will not be used primarily to solicit franchise sales, Crepe De Licious reserves the right to include a "Franchises Available" notation in advertisements. Any unused funds from a calendar year will be applied to the following year, and Crepe De Licious can contribute or loan additional funds to the Advertising Fund on terms it deems reasonable.
For the fiscal year ending December 31, 2024, Crepe De Licious collected $72,857 in Advertising Fund Contributions and spent $72,614.50. The allocation was as follows: 98% for Administrative and Payroll, 1.7% for Ad Placements, 0.5% for Ad Marketing and Design, 0% for Other, and 0% Retained for Fund.