After the Crepe De Licious agreement ends, what is the duration of the non-compete period?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
e for use by a Crepe de licious business. The term "Marks" also includes any distinctive trade dress used to identify a Crepe de licious business, whether now in existence or hereafter created.
"Prohibited Activities" means any or all of the following: (i) owning, operating, or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, agent, or in any similar capacity) in a Competitive Business (other than owning an interest of five percent (5%) or less in a publicly-traded company that is a Competitive Business); and/or (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees).
"Restricted Period" means the two-year period after you cease to be a manager or officer of Franchisee's Crepe de licious business; provided, however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Restricted Period" means the 12 month period after you cease to be a manager or officer of Franchisee's Crepe de licious business.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, if you are a manager or officer of a Crepe De Licious franchise, you are subject to a non-compete agreement after the relationship ends. This agreement restricts you from engaging in "Prohibited Activities" during the "Restricted Period." The standard "Restricted Period" is two years after you cease being a manager or officer. However, if a court finds this period too long to be enforceable, the "Restricted Period" will be reduced to 12 months.
"Prohibited Activities" include owning, operating, or having an interest in a Competitive Business (more than 5% in a publicly-traded company) or diverting business away from Crepe De Licious. This restriction regarding interest in a Competitive Business applies only to businesses located within or providing services to customers within the "Restricted Territory". If you do engage in Prohibited Activities during the Restricted Period, the period is extended by the amount of time you were engaging in those activities.
It is important to note that Crepe De Licious can modify the terms of the agreement to ensure enforceability. This includes limiting the scope of prohibited activities, narrowing the definition of a competitive business, shortening the restricted period, and reducing the geographic scope of the restricted territory. Additionally, the agreement extends to immediate family members, with a presumption that you violated the agreement if a family member engages in prohibited activities or uses disclosed know-how, unless you can prove otherwise.