How often are rebates received from vendors by Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Rebates As agent for the franchisees, the Company's performance obligation is to negotiate pricing with large vendors and approved suppliers of food supplies on a system-wide basis for the franchisees. As consideration for the price negotiation services provided, the Company receives volume-based rebate revenue from these third-party vendors. These volume rebates are associated with the quantity of franchisee purchases of materials and supplies under the negotiated pricing levels. Revenue from these rebates is recognized at a point in time as the rebates are earned from the vendors based on purchases made by franchisees. The rebates are received from the vendors quarterly.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company receives rebates from its vendors on a quarterly basis. These rebates are volume-based and are associated with the quantity of franchisee purchases of materials and supplies under negotiated pricing levels.
As an agent for the franchisees, Crepe De Licious negotiates pricing with large vendors and approved suppliers of food supplies on a system-wide basis. In return for these price negotiation services, Crepe De Licious receives volume-based rebate revenue from these third-party vendors. The revenue from these rebates is recognized at a specific point in time, specifically when the rebates are earned from the vendors based on the purchases made by franchisees.
For a prospective franchisee, this means that Crepe De Licious actively works to negotiate favorable pricing with suppliers, and any resulting rebates are collected by the company quarterly. This system is designed to benefit franchisees by potentially lowering the cost of goods through negotiated pricing, while Crepe De Licious earns revenue as consideration for its negotiation services.