What is the Crepe De Licious franchisee's right to use the System considered?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise is non-exclusive.
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);
(b) to contract and utilize third party delivery and ghost kitchen companies that may operate within or adjacent to your Territory regardless of the proximity to your Crepe de licious Business (even if there may be some impact to your Crepe de licious Business; you will have no right to be compensated from these third party sales which may occur within your Territory;
(c) to use and license the use of other proprietary and non-proprietary marks or methods, which are not the same as or confusingly similar to the Marks, whether in alternative channels of distribution or in the operation of a business offering quick-service restaurants and related products and services, at any location, including within the Territory, which may be similar to or different from the Crepe de licious Business operated by you;
(d) to sell or distribute, at retail or wholesale or otherwise, directly or indirectly, or license others to sell or distribute, any proprietary items (such as crepe ingredients, crepes, crepe-based food items and crepe sandwiches, and gelato) which bear any proprietary marks, including the Marks, through grocery stores, convenience stores, hotel shops and kiosks, theaters, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside the Territory;
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the franchise granted is non-exclusive. This means that Crepe De Licious retains the right to operate or franchise other businesses using the same Marks and System, even if they are near the franchisee's location and potentially impact their business.
Crepe De Licious reserves several rights regarding the Marks and System. They can operate businesses using the Marks and System outside the franchisee's territory, regardless of proximity. They can also contract with third-party delivery and ghost kitchen companies that operate within or adjacent to the franchisee's territory without compensating the franchisee for any sales occurring within their territory. Additionally, Crepe De Licious can use and license other proprietary marks or methods that are not confusingly similar to the Marks, even within the franchisee's territory.
Furthermore, Crepe De Licious retains the right to sell or distribute proprietary items bearing any proprietary marks through various retail channels, including grocery stores, convenience stores, and third-party delivery companies, both within and outside the franchisee's territory. This extensive reservation of rights by Crepe De Licious means that a franchisee's business can be directly impacted by the franchisor's other ventures and partnerships, potentially affecting their revenue and market share.
This non-exclusive grant has significant implications for prospective franchisees. While franchisees gain the right to operate a Crepe De Licious business, they do not have exclusive rights to their territory. Crepe De Licious can introduce competition in the franchisee's market through various channels, which could dilute the franchisee's customer base and revenue potential. Franchisees should carefully consider these factors and evaluate the potential impact on their business before investing in a Crepe De Licious franchise.