Are the remedies available to Crepe De Licious under the franchise agreement exclusive?
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 is non-exclusive. This means that Crepe De Licious retains broad rights to operate and license others to operate businesses using the Crepe De Licious marks and system, even in areas near a franchisee's location.
Crepe De Licious reserves the right to own, franchise, establish, or operate businesses using its marks and system outside a franchisee's territory, regardless of proximity. They can also contract with third-party delivery and ghost kitchen companies that may operate within or adjacent to a franchisee's territory without compensating the franchisee for any impact on their business. Furthermore, Crepe De Licious can use and license other proprietary marks or methods, even within a franchisee's territory, and sell proprietary items through various retail channels, potentially competing with the franchisee's business.
For a prospective Crepe De Licious franchisee, this non-exclusive arrangement carries significant implications. While franchisees are granted a territory, Crepe De Licious retains considerable freedom to operate and license others in ways that could directly compete with the franchisee's business. This could impact a franchisee's revenue and market share, as Crepe De Licious can establish alternative channels of distribution and partner with third-party services within the same area. Franchisees should carefully consider the potential for competition from Crepe De Licious and its affiliates when evaluating the franchise opportunity and negotiating the terms of their agreement.