From whom does Crepe De Licious receive payment for initial franchise fees?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the company's revenues consist of fees from franchised creperies operated by franchisees. A majority of the revenue includes franchise fees and royalties. Crepe De Licious recognizes revenue when it has obtained approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance, and collectability of consideration is probable.

In simpler terms, Crepe De Licious generates income from the fees and royalties paid by its franchisees who operate the individual Crepe De Licious locations. The company recognizes this revenue when a franchise agreement is in place, both parties agree to the terms, the agreement has commercial value, and Crepe De Licious believes it will receive payment. This is a standard practice in franchising, where the franchisor earns revenue from the initial fees and ongoing royalties paid by franchisees.

This arrangement is typical in the franchise industry, where franchisors rely on fees and royalties from franchisees as a primary revenue source. For a prospective Crepe De Licious franchisee, this means that a portion of their payments will contribute to the franchisor's revenue. The FDD specifies that the company's customers are located in various locations across the United States and are franchisees, corporate suppliers and restaurants. The company's major service line is creperie franchise sales and the contracts are typically for a ten-year period.