Can a Crepe De Licious franchisee challenge the ownership of the Marks?

According to the 2025 Crepe De Licious Franchise Disclosure Document, franchisees are prohibited from challenging the ownership of the Marks. The Marks, as defined in the FDD, encompass the logotypes, service marks, and trademarks used in the operation of a Crepe De Licious business, including the name "CREPE DE LICIOUS" itself. The agreement explicitly states that the franchisor or its affiliates own all rights, title, and interest in these Marks.

This provision means that a franchisee cannot claim any proprietary interest in the Marks or take any action to dispute Crepe De Licious's ownership. The franchisee's right to use the Marks is limited to a nonexclusive license granted solely under the Franchise Agreement. This license allows the franchisee to operate their business using the brand's identity but does not give them any ownership rights.

Crepe De Licious takes steps to protect the Marks by registering them and franchisees must cooperate in maintaining these registrations. Franchisees are required to display the Marks correctly, including providing notice of trademark registration as specified in the operations manual. This ensures consistent branding and reinforces the franchisor's ownership.

This is a standard clause in most franchise agreements, as it protects the franchisor's brand identity and goodwill. By preventing franchisees from challenging the Marks, Crepe De Licious maintains control over its brand and ensures uniformity across all franchise locations. Prospective franchisees should understand that they are licensing the use of the Marks and System, not acquiring ownership, and must adhere to the franchisor's guidelines for their use.