How long do Crepe De Licious franchisees have to pay their 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 and have thirty days to pay. This means that a Crepe De Licious franchisee must ensure that royalty payments are made within 30 days of the billing date, which occurs during the first week of each month.
This payment schedule is fairly standard in the franchise industry, as it allows franchisees a reasonable amount of time to reconcile their sales and manage their cash flow. However, franchisees should be aware of this deadline to avoid late payment fees or potential breaches of the franchise agreement. Consistent late payments could lead to penalties or even termination of the franchise agreement.
Prospective Crepe De Licious franchisees should factor this monthly royalty payment schedule into their financial planning and ensure they have systems in place to track and remit payments on time. Understanding the billing cycle and payment terms is crucial for maintaining a healthy financial relationship with Crepe De Licious and avoiding any disruptions to their franchise operations.