Does a Crepe De Licious franchisee acquire any proprietary interest in the Marks?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
10.01 Ownership of the Marks. You acknowledge that we or our affiliates own all rights, title and interest in and to the Marks. You will not acquire any proprietary interest in the Marks, and you will not challenge ownership of the Marks or our right to use the Marks. Except as expressly provided in this Agreement, you will not acquire any rights to the Marks. Your right to use the Marks is merely a nonexclusive license, derived solely under this Agreement.
10.02 Registration. We or our affiliates have taken and will take all steps reasonably necessary, in our and their sole opinion, to preserve and protect ownership of, and the validity of, the Marks. You will not apply for governmental registration of the Marks, or contest the registration status of the Marks. You will display the Marks, and give notice of trademark registration and claims in the following manner: "CREPE DE LICIOUS" (or as otherwise required in the Operations Manual). You will cooperate fully and in good faith with us and our affiliates for the purpose of maintaining registrations and prosecuting applications for the Marks, and otherwise securing and preserving their rights in and to the Marks.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees do not acquire any proprietary interest in the Marks. The Marks, which include logotypes, service marks, and trademarks such as "CREPE DE LICIOUS," are owned by Crepe De Licious or its affiliates. Franchisees are only granted a nonexclusive license to use the Marks, and this right is derived solely from the Franchise Agreement.
This means that while franchisees are permitted to use the Crepe De Licious brand and associated trademarks to operate their business, they do not own any part of these trademarks. They cannot claim ownership or challenge Crepe De Licious's right to use them. This is a standard practice in franchising, as the franchisor needs to maintain control over its brand to ensure consistency and quality across all franchise locations.
Furthermore, Crepe De Licious or its affiliates will take the necessary steps to protect the ownership and validity of the Marks. Franchisees are prohibited from applying for governmental registration of the Marks or contesting their registration status. They are required to display the Marks and provide notice of trademark registration as specified in the Operations Manual. Franchisees must also cooperate with Crepe De Licious in maintaining registrations and prosecuting applications for the Marks.
In practical terms, this means a Crepe De Licious franchisee must adhere to the franchisor's guidelines on how the trademarks are used and displayed. They cannot alter the Marks or use them in any way that is not approved by Crepe De Licious. This ensures brand consistency and protects the overall value of the Crepe De Licious brand.