What is the payment deadline for royalties billed to Crepe De Licious franchisees?
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 a Crepe De Licious franchisee will need to ensure they have sufficient cash flow to cover these royalty payments within that 30-day window.
Franchisors typically bill royalties on a weekly or monthly basis, so Crepe De Licious's monthly billing cycle is fairly standard. The 30-day payment window provides franchisees with a reasonable timeframe to manage their finances and remit payment.
Prospective franchisees should confirm with existing Crepe De Licious franchisees how strictly this payment deadline is enforced and what, if any, penalties are applied for late payments. Understanding the franchisor's approach to payment enforcement is crucial for financial planning and maintaining a good relationship with Crepe De Licious.