For what purposes can the Crepe De Licious Advertising Fund be used?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ount, or savings account.
We have complete discretion on how the Advertising Fund will be utilized. We may use the Advertising Fund for local, regional, or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, the development of technology for the System, and any other purpose to promote the Crepe de licious brand. We may reimburse ourselves, our authorized representatives, or our affiliates from the Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting, and legal
expenses, taxes, and all other direct or indirect expenses associated with the programs funded by the Advertising Fund. We do not guarantee that advertising expenditures from the Advertising Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Advertising Fund contributions for advertising that is principally a solicitation for the sale of Franchises, but we reserve the right to include a notation in any advertisement indicating "Franchises Available" or similar phrasing, or include information regarding acquiring a Franchise on or as a part of materials and items produced by or for the Advertising Fund.
We assume no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Advertising Fund or to maintain, direct, or administer the Advertising Fund. Any unused funds in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Advertising Fund on any terms we deem reasonable.
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, the franchisor has complete discretion over how the Advertising Fund will be utilized. The fund can be used for local, regional, or national marketing, advertising, sales promotion and promotional materials, public and consumer relations, website development and search engine optimization, and the development of technology for the Crepe De Licious system. It can also be used for any other purpose to promote the Crepe De Licious brand.
Crepe De Licious may reimburse themselves, their authorized representatives, or their affiliates from the Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting, and legal expenses, taxes, and all other direct or indirect expenses associated with the programs funded by the Advertising Fund. The franchisor does not guarantee that advertising expenditures from the Advertising Fund will benefit any franchisee directly, on a pro rata basis, or at all, and they are not obligated to spend any amount on advertising in the geographical area where a franchisee is located.
The franchisor will not use Advertising Fund contributions for advertising that is principally a solicitation for the sale of franchises, but they reserve the right to include a notation in any advertisement indicating "Franchises Available" or similar phrasing, or include information regarding acquiring a Franchise on or as a part of materials and items produced by or for the Advertising Fund. Any unused funds in any calendar year will be applied to the following year's funds, and Crepe De Licious reserves the right to contribute or loan additional funds to the Advertising Fund on any terms they deem reasonable.
For the fiscal year ended December 31, 2024, Crepe De Licious collected $72,857 in Advertising Fund Contributions and spent a total of $72,614.50. The allocation 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 Fund. This demonstrates that the vast majority of the advertising fund was spent on administrative and payroll expenses.