Is Crepe De Licious permitted to merge with a business that competes directly with my Crepe De Licious restaurant?

According to Crepe De Licious's 2025 Franchise Disclosure Document, Crepe De Licious retains the right to merge with businesses that directly compete with your Crepe De Licious restaurant, kiosk, or food truck, regardless of location. This means that Crepe De Licious can combine with a competing business, even if that business operates near your franchise.

This right is explicitly reserved by Crepe De Licious, and it can be exercised without any obligation to compensate you. The FDD states that Crepe De Licious is not required to pay you if they exercise this right within your territory. This lack of compensation could impact your revenue if the merged entity draws customers away from your location.

As a Crepe De Licious franchisee, you will not be protected from competition resulting from such a merger. This is a standard practice in franchising, where the franchisor retains significant control over the brand's strategic direction and growth, even if it means allowing competition within a franchisee's territory. Prospective franchisees should consider this lack of territorial exclusivity and the potential for increased competition when evaluating the Crepe De Licious franchise opportunity.