When are Crepe De Licious royalties billed to franchisees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
- Sales & Usage Based Royalties Franchise rights are considered symbolic intellectual property. For sales-based and usage-based services, a franchisor recognizes revenue at the later of: (1) when the subsequent sales occurs; or (2) on the satisfaction or partial satisfaction of the performance obligation to which the royalty relates. Sales-based and usage-based royalties are recognized as earned. Royalties are billed for in the first week of each month and the franchisees have thirty days to pay.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, royalties are billed to franchisees in the first week of each month. Franchisees then have thirty days to remit payment to Crepe De Licious. This billing and payment schedule applies to sales-based and usage-based royalties, which are recognized as earned.
This arrangement means that prospective Crepe De Licious franchisees should ensure they have sufficient cash flow to cover royalty payments within 30 days of being billed. Failing to pay on time could result in late fees or other penalties as outlined in the franchise agreement. Franchisees should factor this monthly billing cycle into their financial planning and budgeting.
Many franchisors follow a similar monthly or weekly royalty collection schedule. Understanding the timing of these payments is crucial for franchisees to manage their finances effectively and maintain a positive relationship with Crepe De Licious. Franchisees should also clarify with Crepe De Licious the acceptable methods of payment and any potential discounts for early payment, if available.