Is the right granted to Crepe De Licious to use franchisee-developed ideas exclusive or non-exclusive?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
You must disclose to us all ideas, techniques, and products concerning the development and operation of your Crepe de licious Franchise that you or your employees conceive or develop during the term of the Franchise Agreement. You must grant to us, and agree to obtain from your owners or employees, a perpetual, non-exclusive, and worldwide right to use these ideas, techniques, and products concerning the development and operation of your Crepe de licious Franchise that you or your employees conceive or develop during the term of the Franchise Agreement. We will have no obligation to make any lump sum or ongoing payments to you with respect to any idea, concept, method, technique, or product. You must agree that you will not use, nor will you allow any other person or entity to use, any of these ideas, techniques, or products without obtaining our prior written approval.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 45–46)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, any ideas, techniques, and products concerning the development and operation of a Crepe De Licious franchise that a franchisee or their employees conceive or develop during the franchise term must be disclosed to Crepe De Licious. The franchisor is granted a perpetual, non-exclusive, and worldwide right to use these ideas. This means that while Crepe De Licious can use the franchisee's ideas, the franchisee is not prevented from using them as well, although they must obtain prior written approval from Crepe De Licious to do so.
This arrangement benefits Crepe De Licious by allowing them to incorporate successful franchisee-developed innovations across the entire franchise system. However, the franchisee will not receive any financial compensation for these ideas, as Crepe De Licious has no obligation to make any payments for them.
For a prospective franchisee, this clause highlights the importance of carefully considering any innovative ideas they may develop during the franchise term. While they are obligated to share these ideas with Crepe De Licious, they need to obtain written approval from Crepe De Licious before using the ideas themselves or allowing others to use them. This could potentially limit the franchisee's ability to capitalize on their own innovations outside of the Crepe De Licious system. Franchisees should seek clarification on the process and criteria for obtaining approval to use their own ideas.