What is the franchisee's right to use the Crepe De Licious System based on?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the franchisee's right to use the Crepe De Licious System is based on a license granted by the franchisor. Crepe De Licious has the right to license its proprietary system to franchisees, which includes the establishment and operation of Crepe De Licious restaurants and kiosks. This system involves the creation and sale of crepe-based dishes, specialty food items, gelato, and beverages. The license allows franchisees to use the Crepe De Licious System and Marks in their business operations, subject to the terms and conditions outlined in the Franchise Agreement.
The Crepe De Licious System encompasses various elements that contribute to the brand's identity and operational standards. These include distinctive exterior and interior designs, specific recipes, standards for products, equipment, materials, and supplies, as well as uniform operational procedures. The system also covers purchasing and sourcing protocols, inventory and management control, training programs, and marketing initiatives. Crepe De Licious retains the right to modify, improve, and further develop the system over time, ensuring that the brand remains current and competitive.
The franchisee's license to use the Crepe De Licious System is not exclusive. Crepe De Licious reserves the right to operate or franchise other businesses using the Marks and System outside the franchisee's territory, regardless of proximity. They can also use third-party delivery and ghost kitchen companies, even within the franchisee's territory, without compensating the franchisee. Furthermore, Crepe De Licious can use other proprietary marks or methods, as long as they are not confusingly similar to the existing Marks, in alternative distribution channels or businesses, even within the franchisee's territory. This includes selling proprietary items through various retail locations, both within and outside the franchisee's territory.
In practical terms, this means that while a franchisee is granted the right to operate a Crepe De Licious business using the brand's established system and trademarks, the franchisor retains significant control and flexibility in expanding the brand through various channels. A prospective franchisee should carefully consider these limitations and the potential for competition from other Crepe De Licious ventures when evaluating the franchise opportunity.