What is the penalty for using unapproved advertising for a Crepe De Licious franchise?

According to the 2025 Crepe De Licious Franchise Disclosure Document, if a franchisee violates the marketing approval provisions, they will be required to pay an unauthorized advertising fee. This fee is $500 per occurrence and is paid to the Advertising Fund. This fund is intended to offset the damage caused by the franchisee's breach of the agreement.

This means that if a Crepe De Licious franchisee uses advertising materials or programs that have not been reviewed and approved by the franchisor, they will incur a penalty. The penalty is a fixed amount for each instance of unapproved advertising, rather than a percentage of advertising costs or some other variable measure. The funds collected from these penalties are specifically earmarked for the Advertising Fund, suggesting they are used to correct or compensate for the unapproved advertising's potential negative impact.

For a prospective Crepe De Licious franchisee, this highlights the importance of adhering to the franchisor's marketing guidelines and approval processes. Failing to do so can result in unexpected costs that can impact profitability. Franchisees should ensure they understand the process for submitting advertising for approval and the types of advertising that require approval. They should also factor in the potential for these penalties when budgeting for marketing expenses.

Many franchise systems have similar clauses to ensure brand consistency and control over marketing messages. Crepe De Licious franchisees should maintain open communication with the franchisor's marketing team to avoid inadvertent violations and ensure their advertising efforts align with the brand's standards.