Does Crepe De Licious reserve any rights that might affect the territorial protection?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ific territorial restrictions
After the Approved Location is identified by you and consented to by us, so long as you are not in default under the Franchise Agreement and all other related agreements, and except as provided in the Franchise Agreement and subject to the reservation of rights below, we, our affiliates, subsidiaries, designees, or any other Franchise shall not operate a Crepe de licious Restaurant or Kiosk or grant a Franchise for the operation of a Crepe de licious Restaurant or Kiosk within the Territory. Though we may have contracted with a third party delivery or ghost kitchen that may operate occasionally within your Territory. You will have no rights to be compensated from these third party sales which may occur within your Territory.
The Approved Location for a Food Truck will be based upon the Territory and will not be exclusive. Any Food Truck Territory may be revised solely in our discretion at any time during the Franchise Agreement.
We, and our affiliates, have the right to operate, and to license others to operate, Crepe de licious Restaurants, Kiosks, and Food Trucks at any location outside the Territory, even if doing so will or might affect your operation of your Crepe de licious Restaurant, Kiosk, and Food Truck. We retain the right, for ourselves and our affiliates, on any terms we deem advisable, and without granting you any rights:
- 1 to own, franchise, establish and/or operate, and license others to establish and operate, businesses using the Marks and System outside of the Territory, regardless of the proximity to your Crepe de licious Restaurant, Kiosk, or Food Truck (even if there may be some impact to your Crepe de licious Business);
- 2 to use the Internet and other means as a channel of distribution for us, and you may not independently market on the Internet or conduct e-commerce without our prior written approval and subject to the policies and procedures in our Operations Manual;
- 3 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, theatres, malls, airports, gas stations, college campuses, sports venues, third party delivery companies, ghost kitchens, or other retail locations within or outside of the Territory;
- 4 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;
- 5 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 Restaurant, Kiosk, or Food Truck operated by you;
- 6 to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Crepe de licious Restaurant, Kiosk, or Food Truck, wherever located;
- 7 to acquire and convert to the System operated by us, any businesses offering services and products similar to offered by Crepe de licious Restaurants, Kiosks, and Food Trucks, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory, provided that in such situations the newly acquired businesses may not operate under the Marks in the Territory;
8 to implement multi-area marketing programs, which may allow us or others to solicit or sell to customers anywhere. We also reserve the right to issue mandatory policies to coordinate such multi-area marketing programs.
We are not required to pay you if we exercise any of the rights specified above within your Territory. The continuation of the Territory is not dependent upon your achievement of a certain sales volume, market penetration or other contingency. We do not pay compensation for soliciting or accepting orders inside your Territory.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the franchisor retains several rights that could impact a franchisee's territorial protection. Crepe De Licious, its affiliates, and designees are not restricted from operating or franchising Crepe De Licious Restaurants, Kiosks, and Food Trucks outside the franchisee's territory, even if it affects the franchisee's business. Furthermore, Crepe De Licious retains the right to use the internet and other distribution channels, and franchisees cannot independently market online without prior written approval. These stipulations mean that while a franchisee is granted a territory, Crepe De Licious can still operate or allow others to operate nearby, and can also sell products online, creating potential competition.
Crepe De Licious also reserves the right to sell proprietary items through various retail locations, such as grocery stores, convenience stores, and airports, both within and outside the franchisee's territory. They can also operate businesses using proprietary marks at transportation facilities, sports facilities, entertainment venues, and malls, again without regard to the franchisee's territory. Additionally, Crepe De Licious can use other marks or methods that are not confusingly similar to the franchised brand within the franchisee's territory. These rights allow Crepe De Licious to diversify its distribution channels and brand presence, but they also introduce potential competition for franchisees within their designated areas.
Moreover, Crepe De Licious has the right to purchase, be purchased by, merge, or combine with any business, including those that compete directly with a franchisee's Crepe De Licious Restaurant, Kiosk, or Food Truck, regardless of location. They can also acquire and convert businesses offering similar services, even those operated by competitors, to the Crepe De Licious system, provided that the newly acquired businesses do not operate under the Crepe De Licious marks within the franchisee's territory. Crepe De Licious can implement multi-area marketing programs that allow them or others to solicit or sell to customers anywhere. These rights provide Crepe De Licious with flexibility in business development and expansion, but they also carry the risk of increased competition or changes in the market landscape for franchisees.
Finally, the FDD states that Crepe De Licious is not required to compensate franchisees if they exercise any of these rights within the franchisee's territory, and the continuation of the territory is not dependent on the franchisee's sales volume or market penetration. For Area Development Agreements, failure to meet deadlines in the Development Schedule can result in the elimination or reduction of exclusivity, reduction of the Development Area, reduction in the number of Franchised Restaurants to be developed, or retention of Area Development Fees paid to Crepe De Licious. These terms highlight the importance of meeting development obligations and the potential consequences of failing to do so, as well as the lack of guaranteed compensation for actions taken by the franchisor within the franchisee's territory.