Besides the Franchise Agreement, what other agreements are binding for a Crepe De Licious franchise?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Area Development Agreement | Summary |
|---|---|---|
| o Death or disability of area | None | |
| developer | ||
| p Non-competition covenants during the term of the franchise | Section 8.2 | Includes prohibition on engaging in any other business offering similar products, and soliciting or diverting customers to other businesses. |
| q Non-competition covenants after the franchise is terminated or expires | Section 8.3 | Includes a two year prohibition similar to “q” (above), within the Development Area, or within 25 miles of any Crepe Delicious Restaurant then-operating under the System located anywhere. |
| r Modification of the | Section 15 | Must be in writing signed by both |
| agreement | parties. | |
| s Integration/merger clause | Section 15 | Only the final written terms of the Area Development Agreement are binding. |
| t Dispute resolution by arbitration or mediation | Section 16.2 and 16.3 | Except for certain claims, we and you must first mediate, and if unsuccessful arbitrate, all disputes at a location within 5 miles of our then current principal place of business. |
| u Choice of forum | Section 16.4 | All mediations, arbitrations and litigation proceedings must be conducted in the city of our then current principal place of business. This provision may be subject to applicable state laws. |
| v Choice of law | Section 16.1 | Delaware. This provision may be subject to applicable state laws. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, besides the Franchise Agreement, the Area Development Agreement is another binding agreement. The Area Development Agreement includes provisions addressing topics such as non-competition during and after the agreement, modifications, dispute resolution, and choice of law.
Specifically, the Area Development Agreement contains non-competition covenants that restrict the franchisee from engaging in similar businesses during the term of the agreement and for two years after termination or expiration. These restrictions apply within the Development Area or within 25 miles of any operating Crepe De Licious restaurant.
The Area Development Agreement also outlines the process for dispute resolution, requiring mediation and, if unsuccessful, arbitration at a location within 5 miles of Crepe De Licious's principal place of business. The agreement is governed by Delaware law, although this may be subject to applicable state laws. Any modifications to the Area Development Agreement must be in writing and signed by both parties, and only the final written terms of the Area Development Agreement are binding.