What is the duration of the 'Restricted Period' after ceasing to be a manager or officer of a Crepe De Licious franchise?

According to Crepe De Licious's 2025 Franchise Disclosure Document, the 'Restricted Period' is generally two years after an individual ceases to be a manager or officer of a Crepe De Licious franchise. During this time, the former manager or officer is subject to certain restrictions to prevent unfair competition. These restrictions include not engaging in 'Prohibited Activities,' such as owning or operating a competitive business within a defined 'Restricted Territory.'

However, the document includes a provision that acknowledges the possibility of judicial review. If a court of competent jurisdiction determines that the two-year period is too long to be enforceable, the 'Restricted Period' will be reduced to 12 months. This demonstrates an attempt by Crepe De Licious to balance its need to protect its business interests with the legal standards for non-compete agreements, which can vary by jurisdiction.

It's important to note that if the former manager or officer engages in any 'Prohibited Activities' during the 'Restricted Period,' the period will be extended by the amount of time they were engaged in those activities. This clause aims to prevent individuals from circumventing the non-compete agreement by temporarily engaging in prohibited activities and then resuming them after the initial restricted period has ended. Prospective franchisees should be aware of these conditions and seek legal counsel to understand the specific implications in their jurisdiction.