Does Crepe De Licious have sole rights to the Identifiers used by the franchisee?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
10.01 Ownership of the Marks. You acknowledge that we or our affiliates own all rights, title and interest in and to the Marks. You will not acquire any proprietary interest in the Marks, and you will not challenge ownership of the Marks or our right to use the Marks. Except as expressly provided in this Agreement, you will not acquire any rights to the Marks. Your right to use the Marks is merely a nonexclusive license, derived solely under this Agreement.
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;
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 or its affiliates maintain ownership of all rights, titles, and interests in the Marks. Franchisees are granted a nonexclusive license to use these Marks, meaning their right to use them is derived solely from the Franchise Agreement and does not give them any proprietary interest.
Crepe De Licious retains the right to use the Marks and System in any manner they deem advisable, including owning, franchising, or licensing others to operate businesses using the Marks and System outside the franchisee's territory, regardless of proximity. They can also use third-party delivery and ghost kitchen companies, even within a franchisee's territory, without compensating the franchisee. Additionally, Crepe De Licious can use and license other proprietary or non-proprietary marks that are not confusingly similar to the Marks, even within the franchisee's territory.
This non-exclusive arrangement allows Crepe De Licious significant flexibility in expanding its brand through various channels and locations, which could potentially impact individual franchisees. While franchisees are granted the right to use the Marks, they do not have exclusive rights within their territory and may face competition from other Crepe De Licious ventures or licensed entities. This is a common practice in franchising, where the franchisor seeks to maintain control over the brand and expand its reach through multiple avenues.