Does the Crepe De Licious franchise agreement specify any conditions for the Manager's employment?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
"Franchisee" means the Crepe de licious franchisee for which you are a manager or officer.
"Franchisee Territory" means the territory granted to you pursuant to a franchise agreement with us.
"Intellectual Property" means, collectively or individually, our Marks, Copyrights, Know-how, and System.
"Know-how" means all of our trade secrets and other proprietary information relating to the development, construction, marketing, and/or operation of a Crepe de licious business, including, but not limited to, methods, techniques, specifications, proprietary practices and procedures, policies, marketing strategies, and information comprising the System and the Manual.
"Manual" means our confidential operations manual for the operation of a Crepe de licious business, which may be periodically modified by us.
"Marks" means the logotypes, service marks, and trademarks now or hereafter involved in the operation of a Crepe de licious business, including "CREPE DE LICIOUS," and any other trademarks, service marks, or trade names that we designate for use by a Crepe de licious business. The term "Marks" also includes any distinctive trade dress used to identify a Crepe de licious business, whether now in existence or hereafter created.
"Prohibited Activities" means any or all of the following: (i) owning, operating, or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, agent, or in any similar capacity) in a Competitive Business (other than owning an interest of five percent (5%) or less in a publicly-traded company that is a Competitive Business); and/or (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees).
"Restricted Period" means the two-year period after you cease to be a manager or officer of Franchisee's Crepe de licious business; provided, however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Restricted Period" means the 12 month period after you cease to be a manager or officer of Franchisee's Crepe de licious business.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, the System Protection Agreement outlines certain conditions regarding a manager's or officer's employment. Specifically, if a manager or officer of a Crepe De Licious franchise leaves their position, they are subject to a restricted period, generally two years, during which they cannot engage in competitive business activities. This restriction applies to prevent the use of Crepe De Licious's intellectual property and know-how in a way that could harm the franchise system. However, if a court deems the two-year period too long, the restricted period is reduced to 12 months.
The System Protection Agreement emphasizes the protection of Crepe De Licious's intellectual property, including trademarks, copyrights, know-how, and the overall system. Managers and officers are prohibited from using this intellectual property in any business or capacity other than for the benefit of the Crepe De Licious business operated by the franchisee. They must also maintain the confidentiality of the intellectual property, avoid unauthorized copies of documents, and take reasonable steps to prevent unauthorized use or disclosure.
Upon termination of employment or engagement with the franchisee, the manager or officer must immediately cease using the intellectual property and return all related documents and data. This ensures that confidential information remains within the Crepe De Licious system and is not used to the advantage of competitors. These conditions aim to safeguard Crepe De Licious's business model and protect the interests of both the franchisor and other franchisees within the system.
Prospective franchisees should carefully review the System Protection Agreement and understand the implications of these restrictions on their managers and officers. It is important to ensure that all personnel are aware of their obligations regarding confidentiality and non-competition, both during and after their employment with the Crepe De Licious franchise. This helps maintain the integrity of the Crepe De Licious brand and protects the investment of all franchisees.