Which item in the Disclosure Document discusses Crepe De Licious' advertising obligations?
Crepe_De_Licious Franchise · 2025 FDDAnswer 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.
Local Advertising
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
System Website
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, Item 11, titled "Franchisor's Assistance, Advertising, Computer Systems, and Training," outlines the franchisee's advertising obligations. This item details the advertising fee, the advertising fund, local advertising requirements, grand opening marketing, and the system website.
Specifically, franchisees are required to pay an advertising fee of 3% of their monthly gross revenues, which goes towards the national Advertising Fund. In addition to this, 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 means the franchisee must pay the difference to Crepe De Licious or the Advertising Fund, if established.
Furthermore, franchisees are obligated to spend at least $2,500 on local advertising and marketing activities related to their grand opening, which must occur before the restaurant opens and during its first 90 days of operation. All grand opening marketing campaigns require approval from Crepe De Licious. The document also mentions the existence of a System Website for Crepe De Licious businesses, including local pages for each franchisee, and outlines rules and policies for internet usage and marketing.