What is the definition of 'Development Area' in the context of the Crepe De Licious non-compete agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
l be operated pursuant to a separate Crepe Delicious Holding USA, Inc. Franchise Agreement (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
- 1.1.2 For each Franchised Restaurant to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Restaurant in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
- 1.1.3 Each Franchised Restaurant developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area").
- 1.2 Development Area. Except as otherwise set forth herein (including, without limitation, the rights retained by Franchisor as described in Section 1.3), during the term of this Agreement, and so long as Area Developer is in compliance with its obligations under this Agreement and all of the Franchise Agreements between Area Developer (including any affiliate of Area Developer), Franchisor shall not establish or operate, or license anyone other than Area Developer to establish or operate, a Crepe Delicious Restaurant under the Marks and System at any location that is within the Development Area.
- 1.3 Franchisor's Reserved Rights.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the Development Area is a specific geographic location outlined in Paragraph 2 of Exhibit A of the agreement. Each Crepe De Licious restaurant developed under the agreement must be at a location specified in the Franchise Agreement and within this designated Development Area.
Crepe De Licious grants the Area Developer certain protections within the Development Area. So long as the Area Developer complies with their obligations and all Franchise Agreements, Crepe De Licious will not establish, operate, or license others to operate a Crepe De Licious restaurant under the Marks and System within the Development Area. This provides the Area Developer with a degree of exclusivity, allowing them to develop the Crepe De Licious brand in their designated territory without direct competition from the franchisor or other franchisees.
However, Crepe De Licious retains several rights within and outside the Development Area. These reserved rights include the ability to operate or license others to operate Crepe De Licious restaurants outside the Development Area, regardless of their proximity or impact on the Area Developer's sales. Crepe De Licious also reserves the right to operate non-store-front businesses under the Marks within or outside the Development Area. Additionally, Crepe De Licious can operate restaurants at Non-Traditional Sites (such as airports, transportation centers, and educational facilities) within or outside the Development Area. These reserved rights allow Crepe De Licious to pursue alternative distribution channels and locations without being restricted by the Development Area agreement.