Does Crepe De Licious have the right to sell its rights to the Marks?
Crepe_De_Licious Franchise · 2025 FDDAnswer 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;
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious FDD, Crepe De Licious retains all rights to use the Marks and System, including the right to sell or distribute proprietary items bearing the Marks through various retail locations. This means that while franchisees are granted a license to use the Marks within their franchised business, Crepe De Licious maintains ownership and control over the Marks and can utilize them in other channels of distribution.
Crepe De Licious has the right to use and license the Marks and System outside the franchisee's territory, regardless of proximity. They can also contract with third-party delivery and ghost kitchen companies, even within the franchisee's territory, without compensating the franchisee. Additionally, Crepe De Licious can use and license other proprietary marks or methods that are not confusingly similar to the Marks, even within the franchisee's territory.
This reservation of rights allows Crepe De Licious to expand its brand presence through various avenues, such as grocery stores, convenience stores, and online platforms, without being restricted by individual franchise territories. While this provides flexibility for Crepe De Licious, it also means that franchisees may face competition from other channels utilizing the same Marks, and they will not be compensated for sales made through these alternative channels within their territory. Prospective franchisees should consider this when evaluating the potential market and revenue streams for their Crepe De Licious franchise.