How 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 the 2025 Crepe De Licious Franchise Disclosure Document, franchise rights are considered symbolic intellectual property, and royalties are based on sales and usage. Crepe De Licious bills royalties in the first week of each month. Franchisees then have thirty days to remit payment.
This billing structure means that prospective Crepe De Licious franchisees should ensure they have sufficient cash flow to cover royalty payments each month. Franchisees need to accurately track their sales and usage to reconcile with the royalty invoices received from Crepe De Licious. The thirty-day payment window provides some flexibility, but franchisees must manage their finances to avoid late fees or potential breaches of the franchise agreement.
It is common practice in the franchise industry to bill royalties on a regular basis, often weekly or monthly, based on a percentage of gross sales. The specific terms can vary widely, so prospective franchisees should carefully review the FDD and franchise agreement to understand the royalty structure and payment obligations for Crepe De Licious.