What rights does Crepe De Licious reserve regarding the Marks and System?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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;
- (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.
2.04 Owners Agreement. To induce us to enter into this Agreement, all persons with a direct or indirect ownership interest in the Franchised Business, and their spouses, must sign and deliver to us the Owners Agreement in the form attached to this Agreement as Attachment C.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the company retains significant rights to use the Marks and System, even within a franchisee's territory. While a franchisee receives a non-exclusive license to operate a Crepe De Licious Business, the franchisor reserves broad authority to leverage its brand and operational system in various ways. This includes establishing other franchised or corporate-owned locations, utilizing third-party delivery services and ghost kitchens, and distributing proprietary items through alternative retail channels.
Crepe De Licious explicitly reserves the right to operate or license businesses using its Marks and System outside the franchisee's territory, regardless of proximity. They can also use other proprietary marks or methods not confusingly similar to the existing Marks, even within the franchisee's territory. Furthermore, Crepe De Licious can sell proprietary items bearing their marks through various retail outlets, including grocery stores and airports, without compensating the franchisee, even if these sales occur within the franchisee's territory.
Additionally, Crepe De Licious maintains the right to operate businesses using the Marks and System in venues like airports, train stations, entertainment facilities, and malls, both within and outside the franchisee's territory. They can also acquire or merge with any business, including competitors, and convert existing businesses to the Crepe De Licious System, provided the acquired businesses do not operate under the Marks within the franchisee's territory. Crepe De Licious also reserves the right to implement multi-area marketing programs and control internet marketing and e-commerce activities.
These stipulations highlight that a Crepe De Licious franchise is non-exclusive, and the franchisor retains considerable control over brand development and distribution strategies. A prospective franchisee should carefully consider these reserved rights, as they could impact the franchisee's market share and revenue potential. It is important to note that Crepe De Licious is not obligated to compensate franchisees when exercising these rights, even if it directly affects the franchisee's territory.