Does Crepe De Licious have an obligation to direct the franchisee's employees or operate the business?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Background. You are an employee, independent contractor, agent, representative, or supplier of Franchisee. Because of this relationship, you may gain knowledge of our Intellectual Property. You understand that protecting the Intellectual Property is vital to our success and that of our franchisees, and that you could seriously jeopardize our entire Franchise System if you were to use such Intellectual Property in any way other than as described in this Agreement. In order to avoid such damage, you agree to comply with this Agreement.
3. Know-How and Intellectual Property: Nondisclosure and Ownership. You agree: (i) you will not use the Intellectual Property in any business or capacity other than for the benefit of the Crepe de licious Business operated by Franchisee or in any way detrimental to us or to the Franchisee; (ii) you will maintain the confidentiality of the Intellectual Property at all times; (iii) you will not make unauthorized copies of documents containing any Intellectual Property; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Intellectual Property; and (v) you will stop using the Intellectual Property immediately if you are no longer an employee, independent contractor, agent, representative, or supplier of Franchisee. You further agree that you will not use the Intellectual Property for any purpose other than the performing your duties for Franchisee and within the scope of your employment or other engagement with Franchisee.
The Intellectual Property is and shall continue to be the sole property of Crepe Delicious Holding USA, Inc. You hereby assign and agree to assign to us any rights you may have or may acquire in such Intellectual Property. Upon the termination of your employment or engagement with Franchisee, or at any time upon our or Franchisee's request, you will deliver to us or to Franchisee all documents and data of any nature pertaining to the Intellectual Property, and you will not take with you any documents or data or copies containing or pertaining to any Intellectual Property.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, the franchisor does not have an obligation to direct the franchisee's employees or operate the business. The franchisee is responsible for managing their own employees and day-to-day operations. However, Crepe De Licious does provide a System Protection Agreement that the franchisee's employees must adhere to.
The System Protection Agreement outlines the protection of Crepe De Licious's intellectual property. Employees are prohibited from using the intellectual property in any business other than the franchisee's Crepe De Licious business, and they must maintain the confidentiality of the intellectual property at all times. They are also prohibited from making unauthorized copies of documents containing any intellectual property and must take reasonable steps to prevent unauthorized use or disclosure of the intellectual property.
This agreement ensures that employees of the franchisee understand their obligations to protect Crepe De Licious's confidential information and trade secrets. It also specifies that upon termination of employment, employees must return all documents and data pertaining to the intellectual property. This is a common practice in franchising to protect the brand's system and know-how.