When are royalties billed to Crepe De Licious 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 both sales-based and usage-based royalties.
This arrangement means that Crepe De Licious franchisees need to ensure they have sufficient cash flow to cover royalty payments within 30 days of being billed. Proper financial planning and management are essential to meet these obligations. Franchisees should factor this monthly expense into their operating budget and monitor their sales and usage to anticipate the royalty amount due.
The FDD also mentions that advertising fees are billed in the first week of the month and are due within thirty days, similar to the royalty payment schedule. Franchisees should be aware of both these recurring monthly expenses and plan accordingly. This consistent billing cycle allows franchisees to manage their finances predictably, as long as they maintain accurate records and budget effectively.