What actions are prohibited by the non-competition covenants during the term of the Crepe De Licious franchise agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the Franchise | Section 5.21 | Neither you, your principal owners, nor any immediate family members of you or your principal owners may participate in a diverting business, have no owning interest in, loan money to, or perform services for a competitive business anywhere; you may not interfere with our or our other franchisees’ Crepe de licious Franchise(s). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, Section 5.21 of the franchise agreement outlines the non-competition covenants during the term of the franchise. This section specifies that neither the franchisee, their principal owners, nor any immediate family members of the franchisee or their principal owners are allowed to participate in a diverting business.
Furthermore, they are prohibited from having any ownership interest in, loaning money to, or performing services for a competitive business, regardless of location. The franchisee is also barred from interfering with Crepe De Licious or its other franchisees' Crepe De Licious franchises.
In practical terms, this means that while operating a Crepe De Licious franchise, the franchisee and related parties must be completely uninvolved in any competing business. This restriction is quite broad, covering not only direct operation of a competing business but also financial investment or providing services to such a business. This is a fairly standard non-compete clause in franchising, designed to protect the brand and the interests of other franchisees within the Crepe De Licious system.