What constitutes 'Prohibited Activities' for a manager or officer of a Crepe De Licious franchisee?

According to the 2025 Crepe De Licious Franchise Disclosure Document, "Prohibited Activities" for a manager or officer of a Crepe De Licious franchisee are explicitly defined. These activities include owning, operating, or having any interest in a Competitive Business. This encompasses various roles such as owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, or agent. However, holding an interest of five percent (5%) or less in a publicly-traded company that is considered a Competitive Business is an exception to this rule.

Additionally, "Prohibited Activities" include diverting or attempting to divert any business away from Crepe De Licious, its affiliates, or its franchisees. This restriction is in place to protect the brand's market share and ensure fair competition within the franchise system.

These restrictions apply while the individual is a manager or officer of the Crepe De Licious franchise and continue for a specified period after their departure, known as the "Restricted Period." The "Restricted Period" is typically two years, but it may be reduced to 12 months if a court deems the initial period too long to be enforceable. The geographical scope of these restrictions is defined by the "Restricted Territory," which is generally a 25-mile radius from the franchisee's Crepe De Licious business and other Crepe De Licious locations. However, this territory may also be reduced to a 12-mile radius by a court if the initial scope is deemed too broad.

It is important for prospective franchisees and their managers or officers to understand these restrictions to avoid any potential conflicts of interest or legal issues. Compliance with these terms is crucial for maintaining a healthy and competitive franchise system for Crepe De Licious.