Besides the franchisee, who else is restricted from engaging in businesses similar to Crepe De Licious?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
licious business. You further agree that you will not use all or part of the Intellectual Property or all or part of the System for any purpose other than the performance of your duties for Franchisee and within the scope of your employment or other engagement with Franchisee. These restrictions on Know-how, Intellectual Property and the System shall not apply to any information which is information publicly known or becomes lawfully known in the public domain other than through a breach of this Agreement or is required or compelled by law to be disclosed, provided that you will give reasonable notice to us to allow us to seek protective or other court orders.
- 4. Unfair Competition During Relationship. You agree not to unfairly compete with us at any time while you are a manager or officer of Franchisee's Crepe de licious business by engaging in any Prohibited Activities.
- 5. Unfair Competition After Relationship. You agree not to unfairly compete with us during the Restricted Period by engaging in any Prohibited Activities; provided, however, that the Prohibited Activity relating to having an interest in a Competitive Business will only apply with respect to a Competitive Business that is located within or provides competitive goods or services to customers who are located within the Restricted Territory.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, not only are franchisees restricted from engaging in competitive businesses, but also managers or officers of the franchisee, and potentially their immediate family members, are subject to certain restrictions. Specifically, while a manager or officer of a Crepe De Licious franchise, they are prohibited from engaging in any "Prohibited Activities," which include owning, operating, or having an interest in a Competitive Business or diverting business away from Crepe De Licious.
After leaving their position as a manager or officer, these individuals are still restricted from unfair competition for a "Restricted Period," generally two years, within a "Restricted Territory," typically a 25-mile radius around the Crepe De Licious location. This post-relationship restriction includes not having an interest in a Competitive Business within that territory. The agreement specifies that if a court deems the 2-year period or 25-mile radius too broad, it can be reduced to 12 months or a 12-mile radius, respectively.
Furthermore, Crepe De Licious's agreement addresses the potential for circumvention through family members. It states that if an immediate family member (spouse, parent, sibling, child, grandparent, or grandchild) engages in Prohibited Activities during the time the manager or officer is restricted, it will be presumed that the manager or officer disclosed confidential information ("Know-how") to that family member. While the manager or officer can rebut this presumption with evidence, this clause places a significant burden on them to prove they did not share proprietary information, highlighting the importance Crepe De Licious places on protecting its system and trade secrets.