Is a Crepe De Licious franchisee allowed to make agreements in the franchisor's name?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Agreement ("Agreement") is made by and between Crepe Delicious Holding USA, Inc., a Delaware corporation headquartered at 147 Citation Drive, Unit 29, Concord, Ontario, Canada L4K 2P8 ("we" or "us"), and the franchisee identified on the signature page of this Agreement ("you") as of the date specified as the "Effective Date" on the signature page. In consideration of the following mutual promises, the parties agree as follows:
1. RECITALS
- 1.01 System and Marks. We have the right to use and to license to our franchisees a proprietary and distinctive system ("System") relating to the establishment and operation of Crepe de licious restaurants and kiosks which make and sell some or all of the following: crepe-based dishes and other specialty food items, gelato, beverage items and other items. We also have the right to use and to license to our franchisees certain service marks, trademarks, trade names, trade dress, logos, slogans and commercial symbols used to identify the restaurant or kiosk or particular items and services offered (collectively, the "Marks").
- 1.02 Desire to Franchise. You desire, upon the terms and conditions set forth in this Agreement, to obtain a license to use the System and Marks in the establishment and operation of a Crepe de licious unit ("Restaurant, Kiosk, or Food Truck") to engage in the business of making and selling some or all of the following: crepe-based dishes and other specialty food items, gelato, beverage items and other items ("Franchised Business"). We are willing, upon the terms and conditions set forth herein, to license you to establish and operate the Franchised Business using the Marks and the System in a Restaurant, Kiosk, or Food Truck at an approved location. Unless the context indicates otherwise, capitalized terms have the meaning ascribed to them in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, franchisees are not authorized to enter into agreements on behalf of the franchisor. The agreement is between Crepe Delicious Holding USA, Inc. and the franchisee. The franchisee is granted a license to use the Crepe De Licious system and marks for operating a Crepe De Licious unit.
The franchisor, Crepe Delicious Holding USA, Inc., retains all rights to the Marks and System, including the right to operate businesses using the Marks and System outside the franchisee's territory. This reservation of rights ensures that Crepe De Licious maintains control over its brand and system, and can make decisions about its expansion and operation without being bound by individual franchisees.
This means a Crepe De Licious franchisee's authority is limited to managing their own franchised business. They cannot legally bind the franchisor to any obligations or agreements. A prospective franchisee should be aware of these limitations and understand that they operate their business independently under the terms and conditions of the Franchise Agreement.