Does Crepe De Licious have significant financing components in its contracts with customers?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company does not have any significant financing components in its contracts with customers as payment is received at or shortly after the point of sale.
The Company excludes from the transaction price amounts collected on behalf of third parties. Revenue is presented net of any sales, use and excise taxes collected from its customers.
Source: Item 23 — RECEIPTS (FDD pages 57–233)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious does not have significant financing components in its contracts with customers. The FDD states that payment is typically received at or shortly after the point of sale. This means that Crepe De Licious franchisees and the company-owned restaurant primarily operate on a cash basis or short-term payment cycle, rather than offering extended payment plans or financing options to customers.
This policy simplifies financial transactions for both Crepe De Licious and its customers. Franchisees do not need to manage complex financing arrangements, and customers are not burdened with long-term debt obligations. This approach aligns with the quick-service restaurant model, where immediate payment is the norm.
Furthermore, the FDD mentions that Crepe De Licious excludes amounts collected on behalf of third parties from the transaction price and presents revenue net of sales, use, and excise taxes. This indicates a straightforward revenue recognition process, where only the net amount received from sales is recorded as revenue, further streamlining financial reporting and reducing potential complications related to financing.