What is the payment deadline for advertising service revenues billed to Crepe De Licious franchisees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Advertising Fees The Company maintains and administers an advertising fund (the "Advertising Fund"). The advertising contributions may be commingled in the general funds, but administratively segregated to form the Advertising Fund. All franchisees must contribute to the fund at the same rate of 3 percent of their respective gross revenues. The Advertising Fund may be used by the Company, in its sole discretion, to meet any and all costs of advertising for the franchise's concept as a whole. The Company has determined the advertising services provided to franchisees are highly interrelated with the franchise right and therefore not distinct. As a result, revenues for advertising services are recognized when the related revenue occurs. Revenues for these services are typically billed in the first week of the month and paid within thirty days. These revenues are presented as franchise contributions for advertising and other services. Expenses incurred to provide these services are presented as Franchise advertising expense and other services.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, revenues for advertising services are typically billed in the first week of the month. Crepe De Licious franchisees are required to pay these advertising fees within thirty days of the billing date. These revenues are classified as franchise contributions for advertising and other services.
All Crepe De Licious franchisees must contribute to the advertising fund at a rate of 3 percent of their gross revenues. The Crepe De Licious company manages this fund and has the sole discretion to use it for advertising the franchise concept as a whole.
This payment structure means franchisees need to manage their cash flow to ensure they can remit 3% of gross revenues within 30 days of being billed, which occurs in the first week of each month. Franchisees should factor this regular advertising expense into their financial planning.