What rights does the Crepe De Licious franchisor have to operate, develop, and change the system?
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 Crepe De Licious's 2025 Franchise Disclosure Document, the franchisor retains significant rights to use and modify the Crepe De Licious system and marks. Crepe De Licious reserves the right to own, franchise, establish, and operate businesses using the Marks and System outside a franchisee's territory, regardless of proximity or potential impact on the franchisee's business. This includes the right to license others to do the same. Crepe De Licious can also contract with third-party delivery and ghost kitchen companies, even if they operate within or adjacent to a franchisee's territory, without compensating the franchisee for any resulting sales.
Crepe De Licious also has the right to use and license other proprietary or non-proprietary marks or methods that are not confusingly similar to the existing Marks, even within a franchisee's territory. This could involve operating businesses offering similar quick-service restaurant products and services. Furthermore, Crepe De Licious can sell or distribute proprietary items bearing its marks through various retail channels, such as grocery stores, convenience stores, and other venues, both within and outside the franchisee's territory.
These reserved rights allow Crepe De Licious considerable flexibility in expanding and evolving its brand and distribution channels. For a prospective franchisee, this means that Crepe De Licious retains substantial control over the brand's development and can introduce new channels or partnerships that may compete with existing franchise locations. While the franchise agreement grants certain limited rights, Crepe De Licious maintains broad authority to adapt the system and exploit the Marks in ways it deems advisable, without necessarily providing direct benefits or compensation to individual franchisees.