Is the right to use the Marks by a Crepe De Licious franchisee an exclusive license?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
The Franchise is non-exclusive.
You may not sell products or services, or advertise products or services, within another franchisee's Territory.
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 Crepe De Licious's 2025 Franchise Disclosure Document, the franchise granted is non-exclusive, meaning that Crepe De Licious retains the right to use the Marks and System in any manner they deem advisable. The franchisee's right to use the Marks is merely a nonexclusive license derived solely from the Franchise Agreement.
This non-exclusive arrangement has several implications for a prospective Crepe De Licious franchisee. Crepe De Licious reserves various rights, including the right to establish and operate businesses using the Marks and System outside the franchisee's territory, even if it impacts the franchisee's business. They can also contract with third-party delivery and ghost kitchen companies that operate within or adjacent to the franchisee's territory without compensating the franchisee.
Furthermore, 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. They also retain the right to sell proprietary items bearing the Marks through various retail channels within or outside the territory. These stipulations mean that a Crepe De Licious franchisee's market could be directly impacted by the franchisor's actions, and they would have no recourse for compensation.
In summary, while a Crepe De Licious franchisee is granted the right to use the Marks and System, this right is explicitly non-exclusive, giving Crepe De Licious considerable latitude in how they operate and license the brand, potentially impacting individual franchise locations.