If Crepe De Licious establishes an advertising fund, what will the fund be used for?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
During the operation of your Crepe de licious Business, we (or our designee(s)) will provide the following assistance and services to you:
- 2 If we establish an advertising fund, maintain and use this fund to develop promotional and advertising programs for Crepe de licious Businesses (See Franchise Agreement – Section 7.15).
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.
In addition to the Advertising Fund Contribution, you must spend the greater of $500 or 1% of your Gross Revenues on local advertising each month ("Local Advertising Requirement").
You must spend at least $2,500 on local advertising, public relations, promotion, and other marketing activities in connection with your grand opening before your Restaurant, Kiosk, or Food Truck opens and during its first 90 days of operation.
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 the company establishes an advertising fund, it will use the fund to develop promotional and advertising programs for Crepe De Licious businesses. The fund will be administered by Crepe De Licious, its affiliates, or designees, along with one or more franchisees, and may involve a professional advertising agency or media buyer. The advertising fund will be held in a separate bank, commercial, or savings account.
Crepe De Licious has complete discretion over how the advertising fund is used. The company may use it for local, regional, or national marketing, advertising, sales promotion, promotional materials, public and consumer relations, website development, 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 may reimburse itself, its representatives, or affiliates for administrative costs, independent audits, accounting, bookkeeping, reporting, legal expenses, taxes, and other direct or indirect expenses associated with the programs funded by the advertising fund.
However, Crepe De Licious does not guarantee that advertising expenditures from the fund will directly benefit any franchisee, nor are they obligated to spend any amount on advertising in a franchisee's specific geographical area. The company will not use advertising fund contributions for advertising that primarily solicits franchise sales, but they reserve the right to include franchise availability notices in advertisements. Any unused funds in a calendar year will be applied to the following year's funds, and Crepe De Licious reserves the right to contribute or loan additional funds to the advertising fund on any terms they deem reasonable.
In addition to the advertising fund contribution, franchisees must spend the greater of $500 or 1% of their gross revenues on local advertising each month. Failure to meet this local advertising requirement will require the franchisee to pay the difference to Crepe De Licious, or if established, the Advertising Fund. Franchisees must also spend at least $2,500 on local advertising, public relations, promotion, and other marketing activities in connection with their grand opening before their Restaurant, Kiosk, or Food Truck opens and during its first 90 days of operation.