Can Crepe De Licious require minimum standards for items and services purchased by the franchisee?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
We will provide you with System Standards for items and services, our list of approved items and services, and our list of approved suppliers.
You acknowledge that we and/or our affiliates may be the sole approved suppliers for certain approved items and services, and that we and our affiliates may derive revenues as a result of your purchase of approved items and services either from us or from rebates from suppliers.
- 7.17 Additional Items, Services and Suppliers. If you desire to offer additional items or services that we have not approved, or desire to purchase approved items and services from any supplier who we have not approved, we will consider any written request by you for approval of additional items, services or suppliers (although we are not obligated to approve any). You will be required to pay us for our costs incurred in any inspection or testing of any samples or any proposed new product, service or supplier nominated by you. We will notify you of our approval or disapproval of any new item, service or supplier requested by you within a reasonable time (usually within 90 days) after we have received all of the relevant information we requested. We may withhold approval of any item, service or supplier, as we determine in our discretion. We can revoke approval of an approved supplier at any time in our sole discretion, and we will notify you of any revocation of supplier approval.
2.02 Limitations on Grant.
- (a) System Standards. The Franchise granted by this Agreement is limited to the operation of a Restaurant, Kiosk, or Food Truck in strict accordance with the provisions of this Agreement and the standards we specify in writing, as periodically amended, modified, supplemented or deleted, which we impose on our franchisees in connection with participation in the System, including all mandatory and suggested specifications, policies, rules, techniques and procedures we promulgate about System operation usage (collectively, the "System Standards"). You have no rights under this Agreement to use, and you will not use, the System, Marks or Restaurant, Kiosk, or Food Truck premises in connection with any other business, activities, or unapproved items or services.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, franchisees must adhere to the System Standards, which include mandatory and suggested specifications, policies, rules, techniques, and procedures for System operation usage. These standards are periodically amended, modified, supplemented, or deleted by Crepe De Licious. The franchise agreement limits the franchisee to operating a Restaurant, Kiosk, or Food Truck in strict accordance with these System Standards. Franchisees cannot use the System, Marks, or Restaurant, Kiosk, or Food Truck premises for any other business, activities, or unapproved items or services. Crepe De Licious will provide franchisees with System Standards for items and services, a list of approved items and services, and a list of approved suppliers.
Crepe De Licious may be the sole approved supplier for certain items and services, and they may derive revenues from franchisee purchases either directly or through rebates from suppliers. If a franchisee wants to offer additional items or services not already approved, or purchase approved items from a non-approved supplier, they must submit a written request for approval. Crepe De Licious is not obligated to approve these requests but will consider them. The franchisee will bear the costs of any inspection or testing required for the new product, service, or supplier. Crepe De Licious will typically notify the franchisee of their decision within 90 days after receiving all necessary information.
Crepe De Licious retains the discretion to withhold approval of any item, service, or supplier. They can also revoke approval of a previously approved supplier at any time, notifying the franchisee of such revocation. This allows Crepe De Licious to maintain quality and consistency across all franchise locations, but it also limits the franchisee's autonomy in choosing suppliers and products. Franchisees should be aware of these restrictions and the potential costs associated with seeking approval for new items or suppliers.