Does Crepe De Licious have any purchasing and distribution cooperatives?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
We have negotiated price terms and other purchase arrangements with suppliers for some items, including food and drink products, that we require you to lease or purchase in developing and operating your Crepe de licious Business. In doing this, we seek to promote the overall interests of our Franchise System, network of Crepe de licious Businesses, and our interests as the franchisor. There currently are no purchasing and distribution cooperatives. We do not provide material benefits, such as renewing or granting additional Franchises to franchisees based on their use of designated or approved suppliers. There are no caps or limitations on the maximum rebates we may receive from our suppliers as the result of franchisee purchases.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–28)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company does not currently have any purchasing and distribution cooperatives. However, Crepe De Licious estimates that a significant portion of a franchisee's purchases, approximately 75% to 80% for opening and 65% to 70% on an ongoing basis, must be from Crepe De Licious or its approved suppliers.
Crepe De Licious negotiates price terms with suppliers for certain items, including food and drink products, to promote the overall interests of the franchise system. While there are no purchasing cooperatives, this arrangement allows Crepe De Licious to manage the supply chain and potentially secure better pricing for franchisees.
It is important to note that Crepe De Licious and its affiliates may receive rebates or other consideration from suppliers based on franchisee purchases. During the last fiscal year, which ended December 31, 2024, Crepe De Licious derived $39,368 from rebates from approved suppliers, which was 10% of their revenue. Franchisees should be aware of these arrangements, as they could influence the choice of suppliers and the prices paid for goods and services.