For what purpose may the Crepe De Licious Advertising Fund be used?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Advertising Fees The Company maintains and administers an advertising fund (the "Advertising Fund"). The advertising contributions may be commingled in the general funds, but administratively segregated to form the Advertising Fund. All franchisees must contribute to the fund at the same rate of 3 percent of their respective gross revenues. The Advertising Fund may be used by the Company, in its sole discretion, to meet any and all costs of advertising for the franchise's concept as a whole.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the Advertising Fund is maintained and administered by the company. Franchisees are required to contribute 3% of their gross revenues to this fund. While the contributions may be commingled in the general funds, they are administratively segregated to form the Advertising Fund.
The Crepe De Licious Advertising Fund can be used, at the company's sole discretion, to cover any and all costs associated with advertising the franchise concept as a whole. This means that Crepe De Licious has broad authority over how the advertising funds are spent, as long as it benefits the overall brand.
This arrangement is fairly typical in franchising, where advertising funds are used for marketing and promotional activities. However, the franchisee should be aware that Crepe De Licious has the discretion to decide how the funds are used. Franchisees benefit from system-wide advertising, but have limited control over the specifics.