What business practices must a Crepe De Licious franchisee adhere to?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
If you engage in any Prohibited Activities during the Restricted Period, then you agree that your Restricted Period will be extended by the period of time during which you were engaging in the Prohibited Activity.
- **6.
Immediate Family Members**.
You acknowledge that you could circumvent the purpose of this Agreement by disclosing Know-how to an immediate family member (i.e., spouse, parent, sibling, child, grandparent or grandchild).
You also acknowledge that it would be difficult for us to prove whether you disclosed the Know-how to family members.
Therefore, you agree that you will be presumed to have violated the terms of this Agreement if any member of your immediate family: (i) engages in any Prohibited Activities during any period of time during which you are prohibited from engaging in the Prohibited Activities; or (ii) uses or discloses the Know-how.
However, you may rebut this presumption by furnishing evidence conclusively showing that you did not disclose the Know-how to the family member.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, franchisees must adhere to specific business practices, particularly regarding unfair competition and the use of intellectual property. During the term of the franchise, a franchisee is prohibited from engaging in any activities that unfairly compete with Crepe De Licious. This includes owning, operating, or having any interest in a competitive business, or diverting business away from the franchisor or its affiliates. These restrictions are in place to protect the Crepe De Licious brand and market share.
Post-termination, these restrictions continue for a specified period. Franchisees are prohibited from engaging in competitive activities during the "Restricted Period," which is typically two years after ceasing to be a manager or officer of the Crepe De Licious business. This period may be reduced to 12 months if a court deems the two-year period unenforceable. The non-compete applies to businesses located within the "Restricted Territory" or those providing services to customers within that territory. This ensures that former franchisees do not leverage their knowledge and experience to directly compete with Crepe De Licious in the immediate area.
The agreement also addresses potential circumvention through family members. Franchisees can be presumed to have violated the agreement if an immediate family member engages in prohibited activities or uses the franchisor's know-how. This presumption can be rebutted if the franchisee provides conclusive evidence that they did not disclose the know-how to the family member. This clause highlights the importance Crepe De Licious places on protecting its confidential information and trade secrets. Franchisees must also protect Crepe De Licious's intellectual property, and can only use it to perform their duties for the franchise.
These measures collectively aim to safeguard Crepe De Licious's market position, protect its proprietary information, and ensure fair competition within its franchise network. Prospective franchisees should carefully consider these restrictions and obligations before entering into a franchise agreement to fully understand the scope of their commitments.