Is a Crepe De Licious franchisee permitted to grant sub-franchises or sub-licenses?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not sell products or services, or advertise products or services, within another franchisee's Territory.
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)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, franchisees are not permitted to grant sub-franchises or sub-licenses. The agreement specifies that Crepe De Licious reserves the right to franchise and license others to operate businesses using their marks and system outside the franchisee's territory. This indicates that the franchisee's rights are limited to operating their own unit and do not extend to sub-franchising.
This restriction is typical in many franchise systems, as franchisors usually want to maintain control over brand standards and the selection of franchisees. By retaining the right to grant franchises, Crepe De Licious ensures consistent quality and service across all locations. This also allows them to manage the growth and development of the brand more effectively.
For a prospective Crepe De Licious franchisee, this means they will not have the opportunity to expand their business by sub-franchising to others. Their investment is limited to the operation of their own Crepe De Licious location. If a franchisee is interested in expanding beyond a single unit, they would likely need to negotiate a separate agreement with Crepe De Licious for area development rights, as referenced in the FDD.