Following termination or expiration of the Area Development Agreement, what non-competition restrictions apply to a Crepe De Licious area developer?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in Area Development Agreement | Summary |
|---|---|---|
| q Non-competition covenants after the franchise is terminated or expires | Section 8.3 | Includes a two year prohibition similar to “q” (above), within the Development Area, or within 25 miles of any Crepe Delicious Restaurant then-operating under the System located anywhere. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, area developers are subject to certain non-competition restrictions following the termination or expiration of their Area Development Agreement. Specifically, for a period of two years after termination or expiration, an area developer is prohibited from having any interest in, owning, managing, operating, financing, controlling, or participating in any competitive business.
This restriction applies within the developer's designated Development Area. It also extends to a 25-mile radius of any Crepe De Licious restaurant operating under the system, regardless of location. This means that even if a developer's primary territory was in one city, they could be restricted from operating a competing business in another city if it falls within 25 miles of an existing Crepe De Licious location.
These non-competition terms are outlined in Section 8.3 of the Area Development Agreement. It is important for prospective area developers to carefully review this section and understand the full scope of these restrictions. They should consider how these limitations might affect their future business opportunities should the Area Development Agreement be terminated or expire.