factual

Which item in the Crepe De Licious Disclosure Document discusses advertising?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

Advertising

Advertising Fund

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.

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, websit

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"). If you fail to spend the Local Advertising Requirement, you will be required to pay the difference to us, or if established, the Advertising Fund. You agree, at your sole cost and expense, to issue and offer such rebates, giveaways, and other promotions in accordance with advertising programs established by us, and further agree to honor the rebates, giveaways, and other promotions issued by other Crepe de licious franchisees under any such program, so long as such compliance does not contravene any applicable law, rule, or regulation. You will not create or issue any gift cards/certificates and will only sell gift cards/certificates that have been issued or sponsored by us and which are accepted at all Crepe de licious Businesses, and you will not issue coupons or discounts of any type except as approved by us.

You are not required to participate in any local or regional advertising cooperative for Crepe de licious Franchises.

Grand Opening Marketing

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. Before you conduct your grand opening marketing campaign, it must be approved by us. You must submit to us proof of your expenditures within 30 days after your Restaurant, Kiosk, or Food Truck first opens for business.

Marketing Resources, Pre-Approvals for Marketing Materials, and Internet Marketing

You must order sales and marketing material from us or our designated suppliers. It is a material breach of the Franchise Agreement to use other marketing material without obtaining our prior written approval. If you desire to use your own advertising materials, you must obtain our prior approval, which may be granted or denied in our sole discretion. We will review your request and we will respond in writing

System Website

We have established a System website ("System Website") for Crepe de licious Businesses which includes local pages for each franchisee. Your page will include information relating to your specific business location and select content that we provide from our System Website. Your page will also showcase Crepe de licious products and services. Your monthly technology fee includes website hosting fees. You may be requested to provide content for our Internet marketing, and you must follow our intranet and Internet usage rules, policies, and requirements. You may not establish or maintain any other website or engage in any other electronic marketing of products or services without our prior written approval. All such information shall be subject to our approval prior to posting. You may choose, however, to promote your Crepe de licious Business via alternate online strategies consistent with our policies and guidelines as contained in the Manual, which may be changed at our discretion. We have the right to review all online content on social media sites, blogs, in electronic communications, and on other online sites which are related to your Restaurant, Kiosk, or Food Truck or that contain our Marks, in order to protect the reputation and high quality associated with our Marks and brand. We may require you to remove any questionable usage or content involving our Marks. We may also require you to cease using our Marks on all such sites.

Advisory Council

We currently do not have, but reserve the right to form, one or more franchise advisory councils ("FAC") to advise us on advertising policies.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–40)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, Item 11, titled "Franchisor's Assistance, Advertising, Computer Systems, and Training," extensively covers advertising-related topics. This item details the advertising fee franchisees must pay, which is 3% of monthly gross revenues, contributing to the national advertising fund.

The document specifies how the advertising fund is managed, stating that Crepe De Licious has complete discretion over its utilization for local, regional, or national marketing efforts. It also outlines the franchisee's responsibilities for local advertising, requiring them to spend the greater of $500 or 1% of their gross revenues monthly. Failure to meet this local advertising requirement results in the franchisee paying the difference to Crepe De Licious or the advertising fund, if established.

Furthermore, Item 11 addresses grand opening marketing, mandating a minimum spend of $2,500 on local advertising and related activities within the first 90 days of operation, subject to franchisor approval. It also discusses the System Website, marketing resources, pre-approval processes for marketing materials, and internet marketing guidelines, ensuring brand consistency and quality control across all advertising channels. The document also mentions the possibility of forming a franchise advisory council to advise on advertising policies.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.