What are some of the development and operating obligations a Crepe De Licious franchisee must comply with before opening?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
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"Restricted Territory" means the geographic area within: (i) a 25-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee); and (ii) a 25 mile radius from all other Crepe de licious businesses that are operating or under construction as of the beginning of the Restricted Period; provided, however, that if a court of competent jurisdiction determines that the foregoing Restricted Territory is too broad to be enforceable, then the "Restricted Territory" means the geographic area within a 12-mile radius from Franchisee's Crepe de licious business (and including the premises of the approved location of Franchisee).
"System" means our system for the establishment, development, operation, and management of a Crepe de licious business, including Know-how, proprietary programs and products, Manual, and operating system.
- 2. Background. You are a manager or officer of Franchisee. As a result of this relationship, you may gain knowledge of our System. You understand that protecting the Intellectual Property and our System are vital to our success and that of our franchisees and that you could seriously jeopardize our entire System if you were to unfairly compete with us. In order to avoid such damage, you agree to comply with the terms of this Agreement.
- 3. Know-How and Intellectual Property. You agree: (i) you will not use the Know-how in any business or capacity other than the Crepe de licious business operated by Franchisee; (ii) you will maintain the confidentiality of the Know-how at all times; (iii) you will not make unauthorized copies of documents containing any Know-how; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Know-how; and (v) you will stop using the Know-how immediately if you are no longer a manager or officer of Franchisee's Crepe de 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 the 2025 Crepe De Licious FDD, franchisees have several obligations to meet before opening their franchise. These obligations cover various aspects, including adhering to the Crepe De Licious system, maintaining confidentiality, and properly using the brand's intellectual property. The FDD emphasizes the importance of protecting Crepe De Licious's intellectual property, as it is vital to the success of both the franchisor and the franchisees. Franchisees must not use the intellectual property in any way that is detrimental to Crepe De Licious or other franchisees.
Specifically, franchisees must maintain the confidentiality of the intellectual property at all times and avoid making unauthorized copies of documents containing it. They are also required to take reasonable steps to prevent unauthorized use or disclosure of this information. This includes adhering to the standards and specifications for products, equipment, materials, and supplies, as well as following the uniform standards, specifications, and procedures for operations. These measures ensure that the Crepe De Licious brand maintains its quality and consistency across all locations.
Furthermore, the FDD highlights the importance of the Crepe De Licious System, which includes distinctive exterior and interior design, decor, color schemes, fixtures, and furnishings. Franchisees must adhere to these design elements to maintain a consistent brand image. They must also follow the franchisor's guidelines for site selection, including minimum standards for restaurant sites and utilizing demographic information. This ensures that each location is set up for success and aligns with the overall brand strategy of Crepe De Licious. By complying with these obligations, franchisees contribute to the strength and uniformity of the Crepe De Licious brand, which benefits all franchisees within the system.