Under what circumstances is Crepe De Licious not required to mediate or arbitrate a claim?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious is not required to pay compensation for soliciting or accepting orders inside a franchisee's territory. This means that if Crepe De Licious takes actions that lead to sales within a franchisee's exclusive territory, the franchisee is not entitled to any payment or compensation for those sales. This could occur through various channels, such as online orders or marketing programs that extend into the franchisee's territory.
Crepe De Licious also retains significant rights within a franchisee's territory without any obligation to compensate the franchisee. These rights include owning, franchising, establishing, or operating businesses using the Crepe De Licious 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, again without any compensation to the franchisee for sales occurring within their territory.
Furthermore, Crepe De Licious can use and license other proprietary marks or methods that are not confusingly similar to the Crepe De Licious marks, even within the franchisee's territory. They can also sell or distribute proprietary items through various retail locations, such as grocery stores or airports, within or outside the territory. These activities do not trigger any compensation obligations to the franchisee. These stipulations highlight the non-exclusive nature of the franchise and the broad rights retained by Crepe De Licious, which could impact a franchisee's revenue without any recourse for compensation.