What action will Crepe De Licious take if a franchisee notifies them of a potential infringement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us within three days after you learn about another's use of language, a visual image, or a recording of any kind, that you perceive to be identical or substantially similar to one of our Copyrighted Works or use of our Confidential Information or Trade Secrets, or if someone challenges your use of our Copyrighted Works, Confidential Information, or Trade Secrets. We will take whatever action we deem appropriate, in our sole and absolute discretion, to protect our rights in and to the Copyrighted Works, Confidential Information, or Trade Secrets, which may include payment of reasonable costs associated with the action. However, the Franchise Agreement does not require us to take affirmative action in response to any apparent infringement of or challenge to your use of any Copyrighted Works, Confidential Information, or Trade Secrets, or claim by any person of any rights in any Copyrighted Works, Confidential Information, or Trade Secrets. You must not directly or indirectly contest our rights to our Copyrighted Works, Confidential Information, or Trade Secrets. You may not communicate with anyone except us, our counsel, or our designees regarding any infringement, challenge, or claim. We will take action as we deem appropriate regarding any infringement, challenge, or claim, and the sole right to control exclusively any litigation or other proceeding arising out of any infringement, challenge, or claim under any Copyrighted Works, Confidential Information, or Trade Secrets. You must sign any and all instruments and documents, give the assistance, and do acts and things that may, in the opinion of our counsel, be necessary to protect and maintain our interests in any litigation or proceeding or to protect and maintain our interests in the Copyrighted Works, Confidential Information, or Trade Secrets.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 45–46)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees must notify Crepe De Licious within three days of learning about potential infringements of their copyrighted works, confidential information, or trade secrets. This includes another party's use of similar language or visual images, or if someone challenges the franchisee's use of Crepe De Licious's protected information. After being notified, Crepe De Licious will then decide what action, if any, it deems appropriate to protect its rights.
Crepe De Licious has the sole and absolute discretion to take whatever action it deems appropriate. This may include legal action and payment of associated costs. However, the franchise agreement does not obligate Crepe De Licious to take any action in response to an apparent infringement or challenge. The franchisee is prohibited from directly or indirectly contesting Crepe De Licious's rights to its copyrighted works, confidential information, or trade secrets. Franchisees also cannot communicate with anyone other than Crepe De Licious, its counsel, or its designees regarding any infringement, challenge, or claim.
Crepe De Licious retains exclusive control over any litigation or proceedings arising from infringements, challenges, or claims related to its copyrighted works, confidential information, or trade secrets. Franchisees are required to sign any documents and provide assistance as deemed necessary by Crepe De Licious's counsel to protect the franchisor's interests. This means a franchisee must fully cooperate with Crepe De Licious in any legal matters pertaining to the brand's intellectual property.
In practical terms, while franchisees are responsible for reporting potential infringements, Crepe De Licious maintains complete control over how to respond. This protects Crepe De Licious's intellectual property but also means franchisees have limited recourse if the franchisor chooses not to pursue an infringement claim. Franchisees should be aware that they bear the responsibility of reporting but have no power to direct the franchisor's actions.