Under what conditions can Crepe De Licious dissolve the advertising fund?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Maintain and administer an advertising fund. We may dissolve the advertising fund upon written notice (See Franchise Agreement – Section 7.15).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 29–40)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, Crepe De Licious may dissolve the advertising fund upon written notice to its franchisees. This gives Crepe De Licious the right to end the advertising fund at any time, provided they inform franchisees in writing.
This clause has significant implications for prospective franchisees. While Crepe De Licious currently mandates that franchisees pay an advertising fee of 3% of monthly gross revenues, contributing to a national advertising fund, there is no guarantee this fund will exist throughout the term of the franchise agreement. If the advertising fund is dissolved, franchisees may lose the benefits of national advertising campaigns that are funded by the advertising fund.
It is important to note that the FDD does not specify any particular conditions or reasons that would trigger the dissolution of the advertising fund. This decision is at the discretion of Crepe De Licious. A prospective franchisee should consider the potential impact of the advertising fund's dissolution on their business and discuss this possibility with Crepe De Licious before signing the Franchise Agreement.