Does the Crepe De Licious franchise agreement specify that the rights and duties are personal to the franchisee?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise is non-exclusive.
You may not sell products or services, or advertise products or services, within another franchisee's Territory.
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)
Based on the 2025 Franchise Disclosure Document, the Crepe De Licious franchise agreement outlines specific rights and duties of the franchisee. Item 2 indicates that the franchise is non-exclusive, meaning Crepe De Licious retains the right to operate or franchise other businesses using the Marks and System outside the franchisee's territory. This includes the right to use third-party delivery and ghost kitchen companies, even within the franchisee's territory, without compensation to the franchisee.
Additionally, Crepe De Licious reserves the right to sell proprietary items through various retail channels, regardless of the franchisee's territory. This reservation of rights by the franchisor impacts the franchisee's operational control and revenue potential. The agreement also stipulates that any improvements made to the system by the franchisee become the property of Crepe De Licious, which can then be used by other franchisees without obligation to the originating franchisee.
Furthermore, the System Protection Agreement included as Exhibit H-2 in the FDD defines key terms such as "Competitive Business," "Copyrights," "Franchisee," "Franchisee Territory," "Intellectual Property," "Know-how," "Manual," "Marks," "Prohibited Activities," and "Restricted Period." These definitions clarify the scope and limitations of the franchisee's rights and obligations, particularly concerning intellectual property and competitive activities. The agreement also includes a System Protection Agreement that the franchisee's employees must sign, further protecting Crepe De Licious's interests.
While the FDD excerpts detail various rights, restrictions, and obligations, they do not explicitly state that the rights and duties are personal to the franchisee. A prospective franchisee should seek clarification from Crepe De Licious regarding the personal nature of these rights and duties to fully understand their individual responsibilities and limitations under the franchise agreement.