What is the reported advertising expense for Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | $ | 245,927 |
|---|---|---|
| 2025 | 244,092 | |
| 2026 | 245,737 | |
| 2027 | 239,118 | |
| Total future minimum lease payments | 974,874 | |
| Less: amount representing interest | (30,761) | |
| $_ | 944,113 |
6. Income Taxes
The difference in the amount of income tax expense based on pre-tax income reported on the financial statements as compared to the actual taxable income based on statutory rates consisted primarily to the underestimation of income taxes owed as of December 31, 2022. Temporary differences that give rise to the net deferred income tax asset/liability consist primarily of credit loss expense, depreciation and lease expense, all of which are recognized differently for financial reporting and income tax purposes.
Amounts for deferred tax assets and liabilities are as follows:
| Advertising | $ 99 | | $ 7 6 | | $ 1 75 |
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the advertising expense is listed as $99. This figure is part of a larger table of general and administrative expenses. It's important to note that this amount may only reflect expenses directly incurred by the franchisor and may not include advertising expenses paid by individual franchisees or contributions to any advertising fund.
Prospective franchisees should clarify with Crepe De Licious what this advertising expense covers. It is essential to understand whether franchisees are required to contribute to a separate advertising fund, and if so, what percentage of their gross sales is allocated for this purpose. Understanding the full scope of advertising obligations is crucial for assessing the overall financial commitment.
Furthermore, franchisees should inquire about the types of advertising and marketing activities covered, such as digital marketing, traditional media, or local store marketing. Knowing the details of the advertising strategy will help franchisees evaluate the potential effectiveness and return on investment of these expenses. This information is vital for making an informed decision about investing in a Crepe De Licious franchise.