factual

What right does Crepe De Licious retain regarding the System?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

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;
  • (g) 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;
  • (h) 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; and
  • (i) 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.

We are not required to pay you if we exercise any of the rights specified above within your Territory. We do not pay compensation for soliciting or accepting orders inside your Territory.

Source: Item 22 — CONTRACTS (FDD page 57)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious retains all rights to use the Marks and System, beyond the limited rights expressly granted to the franchisee. This includes the right to own, franchise, establish, and operate businesses using the Marks and System outside the franchisee's territory, regardless of proximity or potential impact on the franchisee's business. Crepe De Licious can also license others to do the same without providing any compensation to the franchisee.

Crepe De Licious maintains the right to contract with third-party delivery and ghost kitchen companies that may operate within or adjacent to a franchisee's territory, again without any obligation to compensate the franchisee for sales occurring within their territory through these third parties. They can also use and license other proprietary or non-proprietary marks or methods not confusingly similar to the Marks, even within the franchisee's territory, in alternative distribution channels or in the operation of quick-service restaurants.

Furthermore, Crepe De Licious reserves the right to sell or distribute proprietary items bearing any proprietary marks through various retail locations, such as grocery stores, convenience stores, and airports, both within and outside the franchisee's territory. They can also own, acquire, establish, or operate businesses using the Marks and System at transportation facilities, entertainment venues, or regional malls, irrespective of the franchisee's territory. Crepe De Licious can also purchase or merge with any business, even those that compete directly with the franchisee's Crepe De Licious Business, and acquire and convert other businesses to the System, even those operated by competitors, provided that the acquired businesses do not operate under the Marks in the franchisee's territory.

Crepe De Licious also has the right to implement multi-area marketing programs and use the Internet as a distribution channel. Franchisees cannot independently market on the Internet or conduct e-commerce without prior written approval from Crepe De Licious. The document specifies that Crepe De Licious is not required to compensate franchisees for exercising any of these rights within their territory or for soliciting or accepting orders inside their territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.