Is Crepe De Licious allowed to acquire a business operated independently and convert it to the Crepe De Licious system?

According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious has the right to acquire businesses that offer similar services and products as Crepe De Licious Restaurants, Kiosks, and Food Trucks, and convert them to the Crepe De Licious system. This includes businesses operated by competitors or independently, whether franchised or corporately owned, and located inside or outside the franchisee's territory. However, these newly acquired businesses cannot operate under the Crepe De Licious trademarks within the franchisee's territory.

This right retained by Crepe De Licious means that a franchisee's territory is not protected from businesses that Crepe De Licious acquires and converts to the Crepe De Licious system. While these acquired businesses cannot use the Crepe De Licious brand within the franchisee's territory, they could still compete with the franchisee's business. This is a significant consideration for prospective franchisees, as it introduces a potential source of competition that is directly controlled by the franchisor.

Prospective franchisees should be aware that Crepe De Licious is not required to compensate them if they exercise this right within their territory. This lack of compensation, combined with the potential for increased competition, highlights the importance of carefully evaluating the market and potential risks before investing in a Crepe De Licious franchise. Franchisees should discuss with Crepe De Licious what their strategy is for acquiring independent businesses and converting them to the Crepe De Licious system.