Is Crepe De Licious required to maintain an advertising fund?

According to Crepe De Licious's 2025 Franchise Disclosure Document, Crepe De Licious requires franchisees to pay an advertising fee. This fee is 3% of the franchisee's monthly Gross Revenues and is used to create a national advertising fund. Franchisees must pay this advertising fee at the same time they pay their royalty fee, based on the gross revenues generated in the previous reporting period. This contribution is in addition to all other advertising requirements outlined in the FDD. Certain franchisees may contribute on a different basis, depending on when they signed their Franchise Agreement. Franchisor-owned outlets may, but are not required to, contribute to the Advertising Fund on the same basis as franchisees.

The Advertising Fund will be administered by Crepe De Licious, its affiliates, or designees, and potentially one or more franchisees. Crepe De Licious may use a professional advertising agency or media buyer to assist them. The Advertising Fund will be held in a separate bank, commercial, or savings account. Crepe De Licious has complete discretion over how the Advertising Fund is used, including for local, regional, or national marketing, advertising, sales promotion, promotional materials, public and consumer relations, website development, search engine optimization, and the development of technology for the Crepe De Licious system.

Crepe De Licious may reimburse themselves, their representatives, or affiliates from the Advertising Fund for administrative costs, independent audits, accounting, bookkeeping, reporting, legal expenses, taxes, and other direct or indirect expenses associated with the programs funded by the Advertising Fund. Crepe De Licious does not guarantee that advertising expenditures from the Advertising Fund will benefit any franchisee directly or on a pro rata basis and is not obligated to spend any amount on advertising in the geographical area where a franchisee is located. 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.

In addition to the Advertising Fund contribution, franchisees must spend the greater of $500 or 1% of their Gross Revenues on local advertising each month. Franchisees are also required to spend at least $2,500 on local advertising, public relations, promotion, and other marketing activities in connection with their grand opening before the Restaurant, Kiosk, or Food Truck opens and during its first 90 days of operation. All grand opening marketing campaigns must be approved by Crepe De Licious.