What aspect of the Crepe De Licious arbitration proceedings is considered confidential?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
"System" means our system for the establishment, development, operation, and management of a Crepe de licious business, including Know-how, proprietary programs and products, Manual, and operating system.
- **2.
Background**.
You are a manager or officer of Franchisee.
As a result of this relationship, you may gain knowledge of our System.
You understand that protecting the Intellectual Property and our System are vital to our success and that of our franchisees and that you could seriously jeopardize our entire System if you were to unfairly compete with us.
In order to avoid such damage, you agree to comply with the terms of this Agreement.
- **3.
Know-How and Intellectual Property**.
You agree: (i) you will not use the Know-how in any business or capacity other than the Crepe de licious business operated by Franchisee; (ii) you will maintain the confidentiality of the Know-how at all times; (iii) you will not make unauthorized copies of documents containing any Know-how; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Know-how; and (v) you will stop using the Know-how immediately if you are no longer a manager or officer of Franchisee's Crepe de licious business.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the confidentiality of Crepe De Licious's Intellectual Property and System are vital to their success. As such, Crepe De Licious requires franchisees, managers, or officers to sign a System Protection Agreement. This agreement ensures that those individuals will not disclose or use the company's know-how, trade secrets, or other proprietary information in any unauthorized manner. This includes maintaining the confidentiality of the Know-how at all times, not making unauthorized copies of documents containing any Know-how, and taking reasonable steps to prevent unauthorized use or disclosure of the Know-how.
The System Protection Agreement also stipulates that individuals must cease using the Know-how immediately if they are no longer a manager or officer of the Crepe De Licious franchise. This is to prevent any potential misuse of the company's confidential information after their association with the franchise has ended. The agreement underscores the importance of protecting Crepe De Licious's Intellectual Property and System to maintain its competitive edge and the success of its franchisees.
For a prospective Crepe De Licious franchisee, this means understanding and adhering to the terms of the System Protection Agreement is crucial. They must ensure that their managers and officers also comply with these confidentiality obligations. Failure to do so could result in legal repercussions and damage to the Crepe De Licious brand and system. The franchisee should also be aware of the specific definitions of terms like "Know-how," "Intellectual Property," and "System" as outlined in the agreement to fully understand the scope of the confidentiality obligations.