What are the primary sources of revenue for a Crepe De Licious restaurant?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's revenues consist of fees from franchised creperies operated by franchisees and from sales of creperie products to customers. A majority of the revenue includes franchise fees and royalties.
The Restaurant primarily earns its revenue through sales of crepes and drink to consumers.
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.
All franchisees must contribute to the fund at the same rate of 3 percent of their respective gross revenues.
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's revenues come from several sources. These include fees from franchised creperies, sales of creperie products to customers, franchise fees, and royalties. For the company-owned restaurant, the primary revenue streams are the sales of crepes and beverages to consumers. These sales occur when the product is delivered to the customer, at which point the revenue is recorded.
Crepe De Licious also generates revenue through rebates from vendors. As an agent for franchisees, Crepe De Licious negotiates pricing with large vendors and approved suppliers. In return for these negotiation services, the company receives volume-based rebates based on the quantity of franchisee purchases. These rebates are recognized when they are earned from the vendors, typically on a quarterly basis.
Additionally, Crepe De Licious collects advertising fees from franchisees. All franchisees contribute 3% of their gross revenues to an advertising fund, which the company manages. These funds are used to cover the costs of advertising for the franchise system as a whole. The revenue from these advertising services is recognized when the related revenue occurs, and it is presented as franchise contributions for advertising and other services.