How does Crepe De Licious use the Advertising Fund Contributions collected from franchisees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
cted for the Marketing Program have been expended. If we terminate any Marketing Program, we may reinstate such Marketing Program at any time and such reinstated Marketing Program shall be administered as described herein.
- 7.15 Advertising Fund. We have established an advertising and marketing fund for Franchises ("Advertising Fund"). We require you to pay an advertising fee in an amount of three percent (3%) of your Gross Revenues, which you must contribute to the Advertising Fund. Your Advertising Fund Contribution will be due at the same time and in the same manner as the Royalty Fee. Franchises owned by us or our affiliates are not obligated to contribute to the Advertising Fund but may do so on a voluntary basis. We have complete discretion on how the Advertising Fund will be utilized. The Advertising Fund may allocate resources to advertise locally, regionally, and/or nationally, in printed
materials, on radio, on television, and/or on the Internet, in our sole discretion. We may reimburse ourselves, or authorized representatives or our affiliates from the Advertising Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other direct or indirect expenses associated with the programs funded by the Advertising Fund. We are not obligated to spend any amount on advertising in the geographical area where you are or will be located. We will not use the Advertising Fund for advertising that is principally a solicitation for the sale of franchises, but we reserve the right to include a notation in any advertisement or website indicating "Franchises Available" or similar phrasing. We may at any time defer or reduce a Franchisee's Advertising Fund Contributions and, upon 30 days' prior written notice to you, reduce or suspend Advertising Fund Contributions and operations for one (1) or more periods of any length and terminate and/or reinstate the Advertising Fund.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the franchisor has established an advertising and marketing fund for franchises, called the "Advertising Fund." Franchisees are required to contribute three percent (3%) of their Gross Revenues to this fund, with contributions due at the same time and manner as the Royalty Fee. Notably, Crepe De Licious franchises owned by the company or its affiliates are not obligated to contribute but may do so voluntarily.
The document states that Crepe De Licious has complete discretion over how the Advertising Fund is utilized. The fund may be allocated to advertising efforts at the local, regional, and/or national levels through various mediums such as printed materials, radio, television, and the Internet. Crepe De Licious may also reimburse itself, its representatives, or affiliates for administrative costs, independent audits, accounting, bookkeeping, reporting and legal expenses, taxes, and other direct or indirect expenses associated with programs funded by the Advertising Fund.
It is important to note that Crepe De Licious is not obligated to spend any amount on advertising in the geographical area where a franchisee is located. While the Advertising Fund will not be used primarily for soliciting franchise sales, Crepe De Licious reserves the right to include a notation indicating "Franchises Available" in any advertisement or website. Crepe De Licious also retains the right to defer or reduce a franchisee's Advertising Fund contributions, and even reduce or suspend the fund's contributions and operations for any length of time with 30 days' prior written notice. If the Advertising Fund is terminated, all unused contributions will be distributed to contributing franchisees, as well as to Crepe De Licious or its affiliates, in proportion to their respective contributions during the preceding 24-month period.