What happens to any improvements or additions to the Crepe De Licious System that a franchisee conceives or develops?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to assign and do hereby assign to us, all right, title and interest in and to the Improvements, including the right to grant sublicenses to any such Improvement.
You shall fully disclose the Improvements to us, without disclosure of the Improvements to others, and shall obtain our written approval prior to using such Improvements.
Any such Improvement may be used by us and all other Crepe de licious franchisees without any obligation to you for royalties or other fees.
We may, at our discretion, apply for and own copyrights, patents, trade names, trademarks and service marks relating to any such Improvement and you shall cooperate with us in securing such rights.
We may also consider such Improvements as our property and trade secrets.
In return, we shall authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.
All Improvements created by you or any other person or entity retained or employed by you are our property, and we shall be entitled to use and license others to use such Improvements
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, any improvements or additions (referred to as "Improvements") that a franchisee develops for the Crepe De Licious system become the property of Crepe De Licious. The franchisee is required to disclose these Improvements to Crepe De Licious and obtain written approval before using them.
Crepe De Licious and its other franchisees can then use these Improvements without owing any royalties or fees to the franchisee who developed them. Crepe De Licious has the discretion to pursue and own copyrights, patents, trade names, trademarks, and service marks related to these Improvements, and the franchisee is obligated to assist in securing these rights. Crepe De Licious may also consider these Improvements as their property and trade secrets.
However, in return, Crepe De Licious will authorize the original franchisee to use any Improvement developed by other franchisees that is generally approved for use within the Crepe De Licious system. All Improvements created by the franchisee or anyone they employ are considered Crepe De Licious's property, and Crepe De Licious is entitled to use and license others to use these Improvements.
This arrangement means that while a Crepe De Licious franchisee's innovative ideas can benefit the entire franchise system, they do not retain exclusive rights or receive direct compensation for their use. Franchisees should consider this when deciding whether to invest time and resources into developing new Improvements for the Crepe De Licious system.