How often are volume rebates received by Crepe De Licious from vendors?
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. The Company does not have any significant financing components in its contracts with customers as payment is received shortly after the rebate is earned.
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 volume-based rebates from its vendors on a quarterly basis. These rebates are earned based on the quantity of franchisee purchases of materials and supplies under negotiated pricing levels. Crepe De Licious acts as an agent for its franchisees by negotiating pricing with large vendors and approved suppliers of food supplies on a system-wide basis.
As consideration for the 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 point in time as the rebates are earned from the vendors based on purchases made by franchisees.
For a prospective franchisee, this means that Crepe De Licious actively seeks to lower costs for supplies through negotiation and then receives rebates from vendors based on the volume of purchases made by all franchisees. These rebates are received by Crepe De Licious quarterly, suggesting a regular and ongoing effort to manage supply costs effectively. This system could potentially benefit franchisees by lowering their overall expenses for materials and supplies, although the direct impact on individual franchisees is not specified.