factual

Who automatically owns the Innovations conceived or developed by the Crave Cookies franchisee?

Crave_Cookies Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 11.6 Innovations. Franchisee shall disclose to Crave Cookies Franchising all ideas, plans, improvements, concepts, methods and techniques relating to the Business (collectively, "Innovations") conceived or developed by Franchisee, its employees, agents or contractors. Crave Cookies Franchising will automatically own all Innovations, and it will have the right to use and incorporate any Innovations into the System, without any compensation to Franchisee. Franchisee shall execute any documents reasonably requested by Crave Cookies Franchising to document Crave Cookies Franchising's ownership of Innovations.

Source: Item 22 — CONTRACTS (FDD page 47)

What This Means (2025 FDD)

According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising will automatically own all Innovations conceived or developed by the franchisee, its employees, agents, or contractors. These innovations encompass all ideas, plans, improvements, concepts, methods, and techniques related to the Crave Cookies business.

This means that if a franchisee or their staff comes up with a new cookie recipe, a more efficient baking process, or a creative marketing strategy, Crave Cookies Franchising will have full ownership of that innovation. The franchisee is obligated to disclose all such innovations to Crave Cookies Franchising.

Crave Cookies Franchising has the right to incorporate any of these innovations into the Crave Cookies system without providing any compensation to the franchisee. Furthermore, the franchisee is required to execute any documents reasonably requested by Crave Cookies Franchising to formally document the franchisor's ownership of these innovations. This clause ensures that any improvements or advancements made within the franchise network can be standardized and shared across all locations, but at the cost of the franchisee's intellectual property.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.