Which sections of the Crepe De Licious Franchise Agreement address advertising obligations?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
During the operation of your Crepe de licious Business, we (or our designee(s)) will provide the following assistance and services to you:
- 2 If we establish an advertising fund, maintain and use this fund to develop promotional and advertising programs for Crepe de licious Businesses (See Franchise Agreement – Section 7.15).
- 8 Provide assistance with your grand opening marketing programs (See Franchise Agreement Section 5.13(b) and Section 7.10).
We require you to pay an advertising fee ("Advertising Fee") in an amount of three percent (3%) of your monthly Gross Revenues for the creation of a national advertising fund ("Advertising Fund"). You must pay the Advertising Fee at the same time that you pay your Royalty Fee, based on the Gross Revenues you generated in the previous reporting period.
You must order sales and marketing material from us or our designated suppliers. It is a material breach of the Franchise Agreement to use other marketing material without obtaining our prior written approval. If you use unauthorized advertising materials, you must pay a fee of $500 per occurrence to us, or if established, the Advertising Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–40)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, several sections within Item 11, titled "Franchisor's Assistance, Advertising, Computer Systems, and Training," address advertising obligations. Specifically, Section 7.15 of the Franchise Agreement is referenced in relation to the establishment and maintenance of an advertising fund by the franchisor. Additionally, Section 5.13(b) and Section 7.10 of the Franchise Agreement are mentioned in connection with assistance provided for grand opening marketing programs.
Furthermore, the FDD outlines that franchisees are required to pay an advertising fee, set at three percent (3%) of their monthly Gross Revenues, which contributes to a national advertising fund. This Advertising Fee is to be paid concurrently with the Royalty Fee, based on the Gross Revenues from the preceding reporting period. The franchisee's contribution to the Advertising Fund is supplementary to other advertising requirements detailed in Item 11.
The franchisor has complete discretion over how the Advertising Fund is utilized, including for local, regional, or national marketing, advertising, sales promotion, public relations, website development, and search engine optimization. The franchisor may also reimburse themselves or their affiliates for various expenses related to the programs funded by the Advertising Fund. Franchisees are also obligated to order sales and marketing materials from the franchisor or designated suppliers and must obtain prior written approval for any advertising materials they intend to use independently, with a fee of $500 per occurrence for unauthorized materials.