How long do Crepe De Licious franchisees have to pay royalties after being billed?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Sales & Usage Based Royalties Franchise rights are considered symbolic intellectual property. For sales-based and usage-based services, a franchisor recognizes revenue at the later of: (1) when the subsequent sales occurs; or (2) on the satisfaction or partial satisfaction of the performance obligation to which the royalty relates. Sales-based and usage-based royalties are recognized as earned. Royalties are billed for in the first week of each month and the franchisees have thirty days to pay.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees are billed for royalties in the first week of each month. After being billed, franchisees have thirty days to pay the royalties. This payment schedule applies to both sales-based and usage-based royalties.
This means a Crepe De Licious franchisee needs to manage their cash flow to ensure royalty payments are made within this timeframe to avoid potential late fees or penalties. Franchisees should also be aware of the billing cycle to anticipate when these payments are due.
It is common practice in the franchise industry to have royalty payments due on a regular basis, often monthly. The thirty-day payment window provided by Crepe De Licious appears fairly standard, giving franchisees a reasonable amount of time to remit payment after receiving the bill.