Can a Crepe De Licious franchisee face competition from other channels of distribution?

According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees may face competition from other channels of distribution. Specifically, if a franchisee signs an Area Development Agreement, they will not receive an exclusive territory and may face competition from other outlets that Crepe De Licious owns, other channels of distribution, or competitive brands that Crepe De Licious controls. This means that even within a franchisee's designated territory, Crepe De Licious reserves the right to operate or license others to operate competing outlets or utilize alternative distribution methods.

Furthermore, Crepe De Licious retains significant rights regarding alternative channels of distribution. The company can use the Internet and other means as a distribution channel for itself, and franchisees are restricted from independent online marketing or e-commerce without prior written approval. Crepe De Licious also has the right to sell or distribute proprietary items through various retail locations, such as grocery stores, convenience stores, and even third-party delivery companies or ghost kitchens, both within and outside the franchisee's territory.

These provisions highlight the non-exclusive nature of the territory granted to Crepe De Licious franchisees and the potential for competition from various sources, including the franchisor itself. Prospective franchisees should carefully consider these factors and evaluate the potential impact on their business before investing in a Crepe De Licious franchise. It is important to understand the specific territorial rights and restrictions outlined in the Franchise Agreement and to assess the level of competition within the designated territory.