Will Crepe De Licious provide an annual accounting for the Advertising Fund?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
terms we deem reasonable.
The Advertising Fund is not audited. We will provide an annual accounting for the Advertising Fund that shows how the Advertising Fund proceeds have been spent for the previous year upon written request. We collected $72,857 in Advertising Fund Contributions during our last fiscal year, ended December 31, 2024 and spent a total of $72,614.50. We allocated this in the following: Administrative and Payroll – 98%, Ad Placements – 1.7%, Ad Marketing and Design – .5%, Other – 0
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–40)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, while the Advertising Fund is not audited, Crepe De Licious will provide an annual accounting for the Advertising Fund, detailing how the proceeds were spent in the previous year. This accounting is provided upon written request from the franchisee.
For the fiscal year ending December 31, 2024, Crepe De Licious collected $72,857 in Advertising Fund Contributions and spent a total of $72,614.50. The allocation of these funds was as follows: 98% for Administrative and Payroll, 1.7% for Ad Placements, 0.5% for Ad Marketing and Design, 0% for Other, and 0% Retained for the Fund.
This level of transparency, while not audited, allows franchisees to see where their advertising contributions are being directed. It is important to note the high percentage allocated to administrative and payroll costs, which may be a point of interest for prospective franchisees to investigate further. The FDD also states that Crepe De Licious does not guarantee that advertising expenditures from the Advertising Fund will benefit any franchisee directly or on a pro rata basis, and they are not obligated to spend any amount on advertising in the franchisee's geographical area.