Is the relocation of a Crepe De Licious franchise subject to the territorial rights of other franchisees?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ubject to our rights set forth below in this Section. 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;
- (e) to own, acquire, establish and/or operate, and license others to establish and operate, businesses using any proprietary marks or systems (including the Marks and System) at any airport, train station, other transportation facility, arena, ballpark, stadium, racetrack, other sports facility, theater, auditorium, concert hall, theme park, amusement park, cruise ship, casino, or other entertainment facility, or within any outlet mall or other regional mall, within or outside the Territory;
- (f) to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Crepe de licious Business, wherever located;
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, franchisees are restricted from selling products or services, or advertising within another franchisee's territory. However, Crepe De Licious retains significant rights regarding the use of its marks and system outside of a franchisee's territory, even if it impacts the franchisee's business. This includes the right to establish and operate businesses using the Crepe De Licious system outside the territory, regardless of proximity.
Crepe De Licious also reserves the right to contract with third-party delivery and ghost kitchen companies that may operate within or adjacent to a franchisee's territory, without any obligation to compensate the franchisee for sales occurring within their territory through these third parties. Additionally, Crepe De Licious can use and license other marks or methods, even within a franchisee's territory, provided they are not confusingly similar to the Crepe De Licious marks.
Furthermore, Crepe De Licious has the right to operate businesses using its marks and systems at various venues such as airports, train stations, entertainment facilities, and malls, both within and outside the franchisee's territory. They can also acquire and convert businesses offering similar products, even those operated by competitors, to the Crepe De Licious system, although these newly acquired businesses may not operate under the Crepe De Licious marks within the franchisee's territory. These stipulations suggest that while franchisees have some territorial protection, Crepe De Licious retains considerable freedom to operate and expand its brand in various ways that could potentially impact individual franchise territories.
In summary, while a Crepe De Licious franchisee is granted a territory, the franchisor retains extensive rights to operate and license others outside that territory, and in some cases, even within it, which could impact the franchisee's business. Relocation of a franchise would likely be subject to these considerations, and a franchisee would need to carefully evaluate the potential impact of nearby Crepe De Licious operations, including those run by the franchisor or third parties.