What is the Crepe De Licious franchisee's obligation to operate in compliance with policies?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
"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.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, as a manager or officer of a Crepe De Licious franchise, you acknowledge that you may gain knowledge of the Crepe De Licious System. The franchise agreement states that protecting the Intellectual Property and System are vital to the success of Crepe De Licious and its franchisees.
To avoid damage to the Crepe De Licious system, you must comply with the terms of the System Protection Agreement. This includes agreeing not to use the Know-how in any business or capacity other than the Crepe De Licious business operated by the Franchisee.
Additionally, you must maintain the confidentiality of the Know-how at all times, refrain from making unauthorized copies of documents containing any Know-how, and take reasonable steps to prevent unauthorized use or disclosure of the Know-how. If you are no longer a manager or officer of the Franchisee's Crepe De Licious business, you must immediately stop using the Know-how.