Does the Crepe De Licious agreement grant rights to third parties?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than the limited rights expressly granted to you under this Agreement, we (on behalf of ourselves and our affiliates) reserve all rights to use the Marks and System, including the following rights, in any manner and on any terms and conditions we deem advisable, and without granting you any rights, accommodation or compensation:
(a) to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside the Territory regardless of the proximity to your Crepe de licious Business (even if there may be some impact to your Crepe de licious Business);
(b) to contract and utilize third party delivery and ghost kitchen companies that may operate within or adjacent to your Territory regardless of the proximity to your Crepe de licious Business (even if there may be some impact to your Crepe de licious Business; you will have no right to be compensated from these third party sales which may occur within your Territory;
(c) to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Business operated by you;
(d) to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theaters, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside the Territory;
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the agreement does grant rights to third parties. Crepe De Licious retains the right to license others to operate businesses using their marks and system outside of a franchisee's territory, regardless of proximity and potential impact on the franchisee's business.
Crepe De Licious also reserves the right to contract with third-party delivery and ghost kitchen companies that may operate within or adjacent to a franchisee's territory. The franchisee will not be compensated for sales made by these third parties within their territory. Additionally, Crepe De Licious can use and license other proprietary or non-proprietary marks that are not confusingly similar to their existing marks, even within a franchisee's territory.
Furthermore, Crepe De Licious retains the right to sell or distribute proprietary items through various retail locations, including grocery stores, convenience stores, and third-party delivery companies, both within and outside the franchisee's territory. This means that while a franchisee operates their Crepe De Licious location, the franchisor can also authorize other businesses, including delivery services and retail outlets, to sell similar products, potentially creating competition within the franchisee's own territory. This is a common practice in franchising, allowing franchisors to expand brand presence through multiple channels, but franchisees should be aware of the potential for internal competition.