factual

After the Crepe De Licious franchise is terminated or expires, what is the geographic radius of the non-compete restriction from other Crepe De Licious businesses under construction?

Crepe_De_Licious Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in Franchise Agreement Summary
r. Non-competition covenants after the Franchise is terminated or expires Section 17.09 Owners cannot have an interest in, own, manage, operate, finance, control, or participate in any competitive business within: (i) a 25-mile radius from your Crepe de licious Business or Territory (and including the premises of the Approved Location); and (ii) a 25-mile radius from all other Crepe de licious businesses that are operating or under construction, for two years.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 48–52)

What This Means (2025 FDD)

According to the 2025 Crepe De Licious Franchise Disclosure Document, after the franchise is terminated or expires, the franchisee is subject to a non-compete covenant. This covenant restricts the franchisee from involvement in any competitive business within a specified radius of existing Crepe De Licious locations.

Specifically, the non-compete restriction extends to a 25-mile radius from all other Crepe De Licious businesses that are operating or under construction. This restriction is in place for a period of two years following the termination or expiration of the franchise agreement. This means a former franchisee cannot own, manage, operate, finance, control, or participate in any competitive business within that 25-mile radius of existing or in-progress Crepe De Licious locations.

This post-term non-compete is a standard practice in franchising to protect the brand and other franchisees. The prospective franchisee should consider the geographic scope and duration of the non-compete, and how it might impact their future business opportunities should they leave the Crepe De Licious system. It is important to note that these restrictions are subject to applicable state laws, which may modify or limit the enforceability of non-compete agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.