factual

Can a Crepe De Licious franchisee grant a sub-franchise or sub-license?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

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);

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

The 2025 Crepe De Licious Franchise Disclosure Document does not explicitly state whether a franchisee can grant sub-franchises or sub-licenses. However, the FDD does state that Crepe De Licious reserves the right to license others to establish and operate businesses using their marks and system outside of a franchisee's territory. This implies that the franchisee themselves does not have the power to sub-license or sub-franchise.

Typically, the right to sub-franchise is granted explicitly in the franchise agreement if it is permitted. The absence of such a clause in the provided excerpts suggests that Crepe De Licious franchisees are likely not allowed to sub-franchise. This is a fairly common arrangement, as franchisors usually want to maintain direct control over their brand and franchise standards.

A prospective Crepe De Licious franchisee should clarify this point with the franchisor directly. Understanding whether sub-franchising is permitted, and if not, what the implications are for expanding their business, is crucial for making an informed investment decision. It would be prudent to inquire about alternative options for expanding their business, such as opening additional units under a separate franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.